FCR Immobilien AG has published its key figures for the third quarter and first nine months, which underline the positive business development despite the difficult market environment. Thanks to indexed rents and a further reduction in vacancies, rental income and EBITDA increased by 8% to EUR 27.7m and EUR 19.3m respectively. Funds from operations (FFO) remained stable at EUR 6.8m, once again demonstrating the resilience of the business model in the face of rising interest costs. Following the successful sale of the last remaining trading asset - the Hotel Il Pelagone in Italy - the company is now focusing exclusively on the lucrative niche of commercial properties in promising secondary locations. AlsterResearch’s analysts see their full-year estimates confirmed by the 9- month figures and reiterate their Buy recommendation with a target price of EUR 23.50. Management will provide further details in a conference call on 14 November as part of the Q3 report, including the issue of the new 7.25% bond. Register here: https://research-hub.de/events/registration/2023-11-14-14-00/FC9-GR. The previous full update can be downloaded under https://www.research-hub.de/companies/FCR%20Immobilien%20AG

In Q3, tonies reported strong performance with a 46% yoy revenue growth, up from 25% in Q2. The DACH region surprised positively with 21% growth after a negative Q2. Main driver once again was the US market with triple-digit growth (109% yoy), benefiting from increased point-of-sale presence. The FY23 guidance of EUR 354m sales and positive EBITDA was confirmed. AlsterResearch’s analysts reiterate to BUY with an unchanged price target of EUR 7.70. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE

Westwing’s Q3 2023 marks a turning point, as the company has returned to top line growth for the first time since Q3 2021. Despite the continued challenging environment amid low consumer confidence, GMV (gross merchandise volume) and revenues rose again by 5% yoy after several quarters of decline. Despite Q3 typically being a seasonally weak quarter, Westwing maintained its positive margin development. Adjusted EBITDA swung from a loss of EUR 4.4m a year ago to a profit of EUR 2.4m. Alongside Westwing’s top line, customer development showed signs of a turnaround with a sequential growth of 1%. Still, Westwing has to face economic headwinds in the short-term. AlsterResearch’s analysts largely stick to their estimates, confirming the PT and BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Siemens Healthineers AG (SHL) reported positive results in Q4 2023. Revenues and adjusted (adj.) EBIT beat consensus by 3%, driven largely by a faster-than-expected rebound in Varian, with strong order development in this segment. Adj. EBIT margin ex-antigen business improved by 160bps yoy in Q4, although the reported margin was 10bps softer yoy. Order growth was healthy, with a book-to-bill ratio of 1.16x in Q4. Management’s FY 2024 guidance range is broadly in line with current consensus expectations, while its optimistic long-term guidance for FY 2025 and beyond is expected to be viewed positively by investors. AlsterResearch’s analysts continue to favor SHL, as it is well placed to benefit from structural megatrends in the medical technology industry. AlsterResearch reiterates the BUY rating with an unchanged PT of EUR 60.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Siemens%20Healthineers%20AG

CompuGroup Medical reported steady progress in Q3 2023. Organic (org.) revenue growth moderated to 1% yoy, as expected on a high comparable base and following a strong H1, and the adjusted (adj.) EBITDA margin improved by 1ppt yoy to 22%. Overall, the Q3 print was a satisfactory one, and management has reiterated its 2023 guidance of 5% org. revenue growth and an adj. EBITDA margin of 22%-25%, which appear achievable. CGM remains well placed to tap opportunities in the e-health infrastructure space, as a growing number of hospitals and healthcare providers seek to digitalize their businesses. Past investments (e.g., in the G3 platform) and strategic preparations offer the company attractive organic growth avenues. AlsterResearch’s analysts remain positive on CGM’s investment case, given its sticky client base and a high share of recurring revenues. AlsterResearch’s DCF-backed PT remains unchanged at EUR 59.00; BUY. The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

After the profit warning issued on 6 November, Lanxess’s lacklustre Q3 results did not come as a surprise. The Q3 numbers were burdened by weak demand across almost all industries and regions and continued destocking by customers. Pricing pressure persisted, and softer volumes and resultant lower utilisation levels weighed on the adjusted (adj.) EBITDA line, which plunged 50% yoy to EUR 119m, as announced earlier. Given no recovery in sight, management has confirmed its recently lowered adj. EBITDA guidance for 2023 (cut by 16% at the mid-point). While Lanxess continues with its cost savings plan and deleveraging/cash conservation efforts – which include the proposed severe dividend cut for FY 2023 and the sale of the Urethane Systems business unit – AlsterResearch’s analysts believe further cost cuts and structural initiatives may be necessary to put the company on a sustainable growth track. AlsterResearch’s analysts broadly maintain their recently reduced estimates, which gives an unchanged price target of EUR 29.00, still supporting the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

Bechtle continued to grow its top-line and increased its profitability. The business volume rose by 6.0% to EUR 1,912m, but lost further momentum compared to Q1 and Q2 (+15.8% yoy and +9.2% yoy). The growth driver was once again the software business. Nevertheless, revenues rose by 1.0% to EUR 1,479m (Q3 22 EUR 1,464m). This modest growth was explained by subdued customer demand from the SME customers, while the public sector and large customers continued to implement their IT projects. EBT exhibited remarkable growth, surging by 6.4% to reach EUR 93.9m. Moreover, the EBT margin climbed yoy from 6.0% to 6.3%. Management displays optimism for Q4 and has reaffirmed its guidance. AlsterResearch’s analyst’s assumptions remain unchanged, and they confirm the BUY rating with a price target of EUR 57.00. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Brenntag's Q3 '23 results were slightly below expectations due to a challenging macroeconomic environment marked by geopolitical uncertainties and inflationary trends. Sales declined by almost 20% yoy to EUR 4.09bn, (at constant currency -15.4%), attributed to lower prices and volumes. The more meaningful operating gross profit fell by 9.5% yoy. Despite a 17% yoy decline in operating EBITDA to EUR 381m, the company's resilience was evident, maintaining historically high margins. Both divisions experienced EBITDA declines, with Brenntag Specialties down 24% and Brenntag Essentials down 13.7%. However, the company excelled in cash generation, with Q3's EUR 442m free cash flow 27% higher yoy. The outlook remains challenging, prompting a cautious guidance adjustment to the lower end of the range. Despite the challenges, the company's strong cash position underscores its resilient business model, leading to a reiteration of a BUY rating with a revised price target of EUR 90.00. The full update can be downloaded under https://www.research-hub.de/companies/Brenntag%20SE

Cancom experienced significant growth in Q3, primarily due to the acquisition of KBC Beteiligungs GmbH, which has been part of Cancom’s consolidation since June 2023. Sales in the third quarter increased by 26.2% to EUR 415.8m (previous year: EUR 329.6m) and EBITDA totaled EUR 35.0m (previous year: EU 28.9m), resulting in a weaker margin of 8.4% (previous year: 8.8%). Management confirmed the current forecast, which was lowered in August. Cancom is expecting full-year sales in the range of EUR 1.52 - 1.58bn and an EBITDA in the range of EUR 116 - 126m, which highlights the importance of a robust Q4 EBITDA of at least EUR 40m to only reach the lower end of the range. Headwinds such as the 'back-to-office' trend are affecting demand at Cancom negatively, which is why AlsterResearch confirms the target price of EUR 27 and maintains a HOLD recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE

GEA Group reported good Q3 2023 numbers, even if revenues and order intake missed consensus estimates by 4% and 3% respectively. But this appears largely due to FX impact. Organic (org.) revenues grew across most segments and adjusted (adj.) EBITDA margin improved on a better product mix and controlled costs. Order intake remained healthy, and the robust backlog provides good revenue visibility for the coming few quarters. Overall, business progress was broadly as expected, and GEA has reiterated its 2023 guidance. Looking ahead, management expects some slowdown in org. sales growth but is optimistic on delivering better EBITDA margins. The recently announced EUR 400m share repurchase plan (until 2025) and cancellation of treasury shares (eventually leading to a cancellation of c. EUR 700m worth of shares) come as positive news. AlsterResearch’s analysts broadly maintain their estimates and reiterate their DCF-backed PT of EUR 44.00 and their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/GEA%20Group%20AG