The Covid pandemic significantly boosted Dermapharm through the production of the Covid-19 vaccine for Biontech. Despite the end of this surge, Dermapharm remains strong due to high demand for pharmaceuticals and dietary supplements. The company's growth is driven by steady income from established branded products, growth opportunities from medical cannabis following Germany's decriminalization, and international expansion into European markets. Continuous investment in R&D also strengthens its long-term competitiveness. Management projects improvement in 2024, with revenue guidance of EUR 1.17bn-EUR 1.21bn and adj. EBITDA of EUR 305mEUR 315m. According to mwb research, the outlook remains positive: The BUY rating is reiterated with a target price of EUR 41.50. The full update can be downloaded under research-hub.de/companies/Dermapharm%20Holding%20SE

Atoss Software has completed its announced conversion to an SE. Also, the capital increase from company funds related to the planned stock split was entered in the commercial register on June 7, 2024. The technical implementation of the share split has not been completed yet, and the company expects the share split to become effective at the earliest on June 24, 2024. mwb research’s PT remains unchanged until the split becomes effective. HOLD. The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20AG

mwb research initiates coverage of INDUS Holding AG with a BUY recommendation and a PT of EUR 40.00 offering an upside potential of c. 50%. INDUS is a leading specialist holding company in the German-speaking SME sector, pursuing a buy-develop-hold strategy. It acquires owner-managed companies primarily focused on succession planning in the industrial technology sector and supports their long-term development. With a portfolio spanning Engineering, Infrastructure and Materials, INDUS boasts a diversified and robust portfolio. It has a solid track record, experienced management and deep sector expertise. INDUS is unique in that it supports its portfolio companies to various growth and development initiatives to drive long-term growth. The company's attractive cash flow generation (FCF yield >15%) and dividend yield (~5%) add to the appeal of the INDUS equity story. The full update can be downloaded under https://www.research-hub.de/companies/INDUS%20Holding%20AG

The European Central Bank (ECB) cut interest rates by 0.25 percentage points for the first time in almost five years. This move could be a game changer for the real estate sector, which is suffering from high interest rates. The rate cut could lead to lower financing costs, which would be particularly beneficial for companies like FCR Immobilien AG. In a model calculation, a one percentage point reduction in interest rates could increase FCR's FFO by around 12% and further increase the value of the real estate portfolio. Overall, the turnaround in interest rates could have a positive impact on the real estate market in general and on the valuation of real estate companies in particular, thus making investments more attractive. mwb research’s analysts therefore reiterate their BUY rating with an unchanged price target of EUR 20.50, which represents an upside of around 100%. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG

CTS Eventim has completed the acquisition of Vivendi's festival and international ticketing activities, including See Tickets and a portfolio of music and live events. The enterprise value of the acquisition is EUR 300m, resulting in a 2023 EV/sales acquisition multiple of 2.2x, compared to CTS Eventim's own multiple of 1.9x. See Tickets, which sold 44m tickets and generated revenues of EUR 105m in 2023, had a 2023 EBITDA margin of 25%, compared to CTS Eventim's ticketing margin of 53%. mwb research’s analysts estimate the acquisition's EV/EBITDA multiple at 11.5x, slightly higher than CTS Eventim's, but if See Tickets' margin improves to CTS' level, the multiple would be an attractive 5.4x. After a strong Q1 performance, CTS recently reaffirmed its 2024 guidance of moderate revenue and adj. EBITDA growth. mwb research’s analysts adjust their estimates to include the acquisition and raise their target price to EUR 86.00 (before: EUR 83.00), while maintaining their HOLD recommendation. The full update can be downloaded under https://www.research-hub.de/companies/CTS%20Eventim%20AG%20&%20Co%20KGaA

Nemetschek (NEM) announced the acquisition of GoCanvas Holdings, Inc. to further accelerate the digitization of the construction industry. GoCanvas specializes in field service collaboration SaaS solutions that digitize paper-based processes, improve security, and ensure compliance. The acquisition aligns with NEM's growth strategy to provide flexible cloud and mobile solutions for field workers that improve real-time data capture, field collaboration and digital workflows. Given the company's expected annual growth of +20% and its potential to add significant value to NEM, mwb research’s analysts believe this transaction is highly accretive and offers robust growth. The purchase price with an ARR 23 multiple of c. 11.5x, which is only marginal above NEM’s own EV/Sales 24 multiple of 11.2x, indicates a reasonable valuation for a high-growth SaaS company. Based on updated estimates, mwb research’s analysts derive at a new price target of EUR 88.00 (old EUR 71.00) and upgrade from SELL to HOLD. The full update can be downloaded under https://www.research-hub.de/companies/research/Nemetschek%20SE

The Friedrich Vorwerk Group (FVG) announced a new major order for offshore grid connection projects (BalWin3 and LanWin4). This order has a volume in the three-digit million range and is expected to start in 2026. Following BorWin4 and DolWin4, this is the second major offshore grid connection order in the last 12 months. This will further fill the order backlog (Q1 24 order backlog EUR 1.05bn) with expectedly better contract terms and thus higher margins. The last two quarters have already seen a strong improvement in margins due to better contract terms for the grid connection contracts in progress (EBIT Q4 23 +1010bps yoy; Q1 24 +80bps yoy). As a result, mwb research’s analysts expect EBIT margins to improve from 3.7% in FY23 to over 6% in FY24 and over 10% by FY25. Based on the margin recovery, order book strength and solid growth prospects from the rampup of the energy infrastructure renewal in Germany (DE), mwb research’s analysts reiterate their BUY rating with an unchanged PT of EUR 22.00. The complete analysis is available at https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

MHP Hotel AG reported a strong FY23 with group revenues up 30% to EUR 136.3m and an EBITDA of EUR 1.1m, exceeding estimates due to increasing RevPar and better fixed cost absorption. Key highlights included a notable 14ppt increase in occupancy and a stabilization of newly opened hotels. With stable demand expected in FY24, boosted by events in UEFA Euro 2024 cities, several major concerts and the opening of the Koenigshof in Munich, MHP expects FY24 revenues of around EUR 160m and adjusted EBITDA of EUR 6.0m, in line with mwb research’s expectations. mwb research’s analysts reiterate their BUY recommendation with a price target of EUR 3.00. Investors interested in the MHP equity story and current developments can register at https://research-hub.de/events for the company's presentation at the mwb research online Travel & Leisure Conference next week on Tuesday. The full update can be downloaded under https://research-hub.de/companies/MHP%20Hotel%20AG

On 24 June, TUI will rejoin the MDAX after shareholders voted to return the primary listing to the Frankfurt Stock Exchange. The move will reduce costs, improve trading liquidity and facilitate alignment with EU airline ownership requirements. TUI will also join the STOXX Europe 600 index. Earlier this week, FTI, the third largest tour operator in the DACH region, filed for insolvency. TUI is currently offering special offers to FTI's customers, which should attract additional customers for the summer season. The market impact in the medium to long term will depend on the outcome of the insolvency proceedings and whether FTI leaves the market for good or re-emerges as a whole or in parts, possibly under new ownership. mwb research’s analysts leave their estimates unchanged until a clearer picture of FTI's future emerges and confirm their BUY recommendation for TUI with a PT of EUR 16.00. Investors interested in the TUI equity story and current developments can register at https://research-hub.de/events for the company's presentation at the mwb research online Travel & Leisure Conference next week on Tuesday. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Duerr announced plans to streamline its structure to strengthen its core businesses. The company will now focus on three divisions: Automotive, Industrial Automation and Woodworking. By early 2025, the Paint and Final Assembly Systems and Application Technology divisions will be merged into the Automotive division to enhance competitiveness and systems expertise. Duerr is reviewing its Clean Technology Systems business and may sell it to take advantage of growth opportunities, while the Battery Technology business will be integrated into Industrial Automation. These changes are designed to improve operational efficiency and service. Duerr maintains its financial outlook, targeting an EBIT margin of 4.5-6.0% and sales growth of 2-8%. Long-term goals include sales of more than EUR 6bn by 2030. The company's strategic focus promises long-term profitability and shareholder value, which prompts mwb research’s analysts to reiterate their BUY recommendation with unchanged PT of EUR 31.00. The full update can be downloaded under https://www.research-hub.de/companies/Duerr%20AG