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

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