mwb research initiate coverage of Infineon Technologies AG with a HOLD recommendation and a PT of EUR 40.00 offering an upside potential of 9.0%. Infineon is a leading global semiconductor manufacturer with around 58600 employees. The company has a dominant market position in the automotive, power management, microcontrollers and IoT technologies. With the semiconductor industry projected to near USD 1 trillion by 2030, Infineon anticipates a >10% CAGR in the upcoming years, driven by trends in core applications such as electromobility, renewable energy, automated driving, IoT and data centers. Infineon has relatively low margins relative to peers and appears to be fairly priced based on P/E and EV/EBIT multiples, with limited upside in mwb research’s DCF model. Therefore, mwb research’s analysts initiate coverage on Infineon with a HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

In the run-up to the Annual General Meeting on 12 June, 2024, mwb research hosted a well-attended event with Formycon AG. CEO Dr. Stefan Glombitza and CFO Enno Spillner presented the business strategy and provided updates on the company's biosimilar pipeline. Formycon underwent profound changes in the recent years. Its new generation of biosimilars, with FYB206 at the forefront, reflects a different approach. Formycon will invest more of its own funds in the development stage to benefit from higher royalties in the future. Building on the expected launches of FYB202 and FYB203, and a potential commercialization partnership for FYB206, mwb research’s analysts come to a revised PT of EUR 89.00 (old: EUR 81.00). mwb research reiterates to BUY. You can find a recording of the event under https://www.research-hub.de/events - The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

Aixtron has acquired a manufacturing site near Turin, Italy, which will significantly increase its production capacity by 30-40%. First shipments from the new site are possible this year, and the company plans to supply a significant part of its production from this new site within two to three years. The acquisition cost, which is included in the previously forecast capital expenditure, is expected to be in the very low double digit million euro range. Despite recent negative news such as slowing SiC orders and a cancelled MicroLED project, the 43% YTD share price correction appears excessive. Aixtron's strong competitive position in long-term structural growth markets, coupled with the new fab, positions the company well for future growth. mwb research’s analysts therefore reiterate their BUY rating with an unchanged PT of EUR 33.00.The full update can be downloaded under https://www.research-hub.de/companies/AIXTRON%20SE

FTI Touristik GmbH (FTI), the third largest tour operator in the DACH region, has filed for insolvency due to ongoing financial difficulties. A strategy of attracting growth through low prices has led to significant losses and debt, with suppliers consequently demanding advance payments, exacerbating the situation. Insolvency could now force the German government to take a steep haircut on its substantial loan to FTI. The state was previously reluctant to do so in negotiations with a potential private equity buyer, Certares, because other aid recipients, such as Lufthansa and TUI, have repaid the state aid in full, so a haircut for FTI would appear anti-competitive. The insolvency proceedings will now open up an alternative route to acquire FTI or some of its assets - not only for Certares, but also for competitors such as TUI or DER. In any case, TUI is likely to benefit from FTI's problems in the short term by picking up some of FTI's former customers. mwb research’s analysts leave their estimates unchanged, with possible upgrades if FTI ceases operations for good. BUY with a PT of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Volkswagen (VW) CEO Oliver Blume announced last week that VW intends to float additional shares from its 90% stake in Traton, with the aim of reducing its holding to 75% plus one share in the medium term. The stated aim is to increase the share's liquidity and attract investors, potentially allowing it to be included in the MDAX. The move is supported by Traton's strong share price performance, up over 70% in the last 12 months. However, the gradual increase in VW's free float could result in a prolonged overhang of shares. Traton has improved margins since 2021 through volume growth and cost efficiencies, but faces challenges from weakening markets, particularly in Europe, as evidenced by a decline in order intake in Q1 2024. Despite trading at a discount to peers, the potential overhang and challenging market conditions lead mwb research’s analysts to maintain their HOLD rating with an unchanged price target of EUR 35.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

Vulcan Energy Resources announced that Hancock Prospecting Pty Ltd (HPPL) and CIMIC Group (CIMIC) will make strategic investments of a total of EUR 40m. While HPPL has already been a Top 5-shareholder, CIMIC Group, member of the German HOCHTIEF Group, becomes a substantial shareholder of Vulcan. The funds will be used for key EPCM validation works, as well as the completion of timely early works, while Vulcan is in the middle of the finalisation of the formal funding package. While mwb research’s analysts have anticipated a fundraising in 2024, their estimates were based on a lower share price. mwb research now expects a slightly lower dilution, which has a positive effect on their target price. The analysts confirm their BUY recommendation with a revised PT of EUR 10.50 (old: EUR 9.90). The previous update can be downloaded under https://www.research-hub.de/companies/research/Vulcan%20Energy%20Resources

Koenig & Bauer (SKB) hosted a Capital Markets Day at drupa, the industry's flagship trade fair, which usually takes place every four years and which acts as a catalyst for the entire industry to showcase innovative products and services. Due to the pandemic, the last drupa took place eight years ago, making this year's event even more important. Alongside the exhibition, SKB provided a comprehensive overview of the company's strategic direction, market opportunities and ongoing projects, ultimately giving investors an insight into the company's growth potential and initiatives to improve profitability and sustainability. mwb research’s analysts maintain their BUY rating with unchanged PT to EUR 18.00 and acknowledge that the share price has recovered almost 35% since end of Feb. this year. With increased visibility into the company’s mid-term targets the experts see further upside to their and consensus estimates. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Sartorius’ management confirmed a normalization of order behavior with an unclear outcome. Therefore, order intake is not a reliable indicator and management is sailing in foggy waters on a quarterly basis. Overall, customers' order sizes are shrinking, and investment decisions are being delayed or postponed. mwb research’s analysts continue to believe that the pandemic has triggered pull-forward effects, and that global laboratory capacity will be saturated for years to come. mwb research remains cautious on the 2024 targets as Q2 results could be disappointing again and the potential recovery has not yet materialized. In detail, Q2 margins will be weaker than in Q1. Hence, the experts continue to see a risk of guidance cuts. Therefore, they confirm their SELL rating based on lowered expectations with a reduced price target of EUR 210.00 (old EUR 240.00). The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

CHAPTERS Group published the FY23 report, confirming preliminary figures from early March. Over the course of 2023, CHAPTERS and its investment platforms have acquired majority stakes in 18 operating companies and spun off the building services group ARUDI. Looking ahead, the company’s development will be defined by its M&A activity. So far, CHAPTERS has added four companies in 2024, thereof three for mlog. In April, the company announced that it intends to conduct a capital increase of up to EUR 60-80m later this year, supported by a backstop agreement with investors for up to EUR 52m. mwb research continues to see CHAPTERS as an exciting opportunity for investors to join large value investors and invest in long-term growth. On a revised model, mwb research increases the PT to EUR 27.00 (old: EUR 24.00). BUY. The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

FCR has made a good start to the financial year and has published its key figures for Q1 24. EBITDA increased to EUR 7.5m (previous year: EUR 7.2m), while EBT decreased slightly to EUR 3.6m (previous year: EUR 3.9m) mainly attributable to higher financing costs. The results demonstrate the stability and profitability of the business model, which is based on predictable rental income. At EUR 2.0m (previous year: EUR 2.3m), FFO remained at a satisfactory level and only slightly below expectations. However, due to indexed rents and further acquisitions, FCR should reach or even exceed mwb research’s estimates of EUR 8.4m for FY24. Key figures such as occupancy and WAULT remained stable. Management is also optimistic about the rest of the year. mwb research therefore reiterates its BUY recommendation with an unchanged PT of EUR 20.50. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG