Viromed Medical has exclusive distribution rights to a revolutionary medical device called plasma care, which uses cold atmospheric plasma to effectively treat chronic wounds without damaging human tissue. The method has demonstrated efficacy in preclinical and clinical studies and the device has the potential to be a blockbuster product in the wound care market. Viromed launched the product in Germany in 2022, where current expert guidelines recommend it for the treatment of wounds. The process has been initiated to pave the way for reimbursement by the public health system, opening up triple-digit million sales potential in the DACH region alone. Once the planned takeover of terraplasma medical has taken place, the initiated international roll out and further use cases (aesthetic/dermatological) could generate in excess of EUR 1 billion in annual sales. Most of this will be high margin recurring revenue from the razor-blade model where disposable spacers are used with the device. The company has only recently gone public in a reverse IPO, and there are still some transparency and governance issues, but investors who get on board early could see significant rewards. AlsterResearch’s analysts initiate coverage of Viromed Medical AG with a BUY recommendation and a PT of 10.40 offering an upside potential of 288.1%. The full update can be downloaded under https://www.research-hub.de/companies/Viromed%20Medical%20AG

Building on the stellar Q2 results, Daimler Truck reported lackluster Q3 figures, with revenue increasing by 3% yoy and adjusted EBIT rising by 5% yoy. Due to a slight decline in sales volumes, mainly due to supplier bottlenecks, Daimler Truck performed below market expectations. However, the Company continues its course towards sustainable growth and higher, more resilient profitability. The Industrial Business's adjusted return on sales increased by another 40bp and arrived at 9.8% during the quarter. The Trucks North America segment recorded a slight decrease in unit sales in the USA, mainly due to supplier bottlenecks. Despite moderating order intake, DTG maintained its FY23 outlook due to the improved business performance in recent quarters. In all, AlsterResearch’s analysts confirm their BUY rating with unchanged PT of EUR 43.00. The full update is available at https://www.research-hub.de/companies/Daimler%20Truck%20Holding%20AG

Stronger-than-expected preliminary October results triggered an upgrade of Westwing’s adj. EBITDA guidance. The company raised its outlook from previously EUR 4-13m to EUR 13-19m, while the revenue guidance was confirmed to reach the upper half of the range of EUR 390-440m (-9% to +2% yoy). Westwing’s Q2 2023 already showed early signs of stabilisation in the top line and saw an improvement in profitability, however, Westwing had guided for a significant moderation in profitability in H2 vs H1 back then. AlsterResearch raised their earnings estimates to reflect the guidance upgrade, while also expecting a sustainable development in FY24 and FY25. Further refinement of the model is pending until Q3 reporting, which is scheduled for November 9. Therefore, AlsterResearch’s analysts raise their PT of EUR 10.00 (before: EUR 9.00), also raising their rating from HOLD to BUY. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Mayr-Melnhof Karton AG (MM Group) reported Q3 results in a challenging market. Sales declined by 18% yoy, but margins recovered at least slightly sequentially. The Board & Paper Division suffered a sharp decline in sales in Q3 due to lower volumes and prices and continued to be loss making. In contrast, Packaging performed well with stable sequential sales and improved margins, benefiting from the successful integration of recent acquisitions in the pharmaceutical packaging business. Overall, MM Group continues to address the challenging conditions with a cost reduction and cash conservation program and demonstrated strong working capital management in Q3. AlsterResearch’s analysts adjust their price target to EUR 160.00 (previously EUR 170.00), reflecting their more cautious view on the market recovery. BUY. The full update can be downloaded under https://www.research-hub.de/companies/Mayr-Melnhof%20Karton%20AG

Fraport's Q3 report showed better-than-expected revenue and EBITDA. The Aviation and International Activities & Services segments outperformed, driven by rising airport fees and passenger numbers. Ground Handling also benefited from both higher volumes and prices to post positive EBITDA for the first time in 3.5 years. Only Retail & Real Estate was slightly disappointing, impacted by an unfavorable PAX mix and low advertising spending. Fraport confirmed its FY23 outlook, and AlsterResearch reiterates to BUY with an unchanged price target of EUR 67.00. The full update can be downloaded under https://www.research-hub.de/companies/Fraport%20AG

Lanxess has issued a profit warning for FY23, lowering its adjusted EBITDA range by EUR 100m due to lower demand and production limitations. This follows an earlier downgrade of c. 30%. The company also plans to propose a severe dividend cut for FY23. Lanxess announced a cost savings plan in Q2, but further cuts may be necessary. AlsterResearch’s analysts downgrade their estimates and come to a new price target of EUR 29.00 (old: EUR 42.00), still supporting the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

Metro’s recent Q4 trading statement contained no detailed figures on operating profit. However, the adj. EBITDA is expected to be in the lower half of the guidance range of c. EUR 1.16bn-1.31bn. Metro highlighted rising cybersecurity costs, but also an insurance compensation, which could not fully compensate for the EBITDA loss due to the cyberattack in Q1 2022/23. While the company is stepping up investments into IT security, Metro is also heavily investing in future growth in line with its “sCore” strategy. AlsterResearch updates the model to reflect post-transaction effects (e.g. India), and also higher expenses and costs, such as and cost inflation in personnel expenses and energy costs. In total, the adjustments lead to a lower PT of EUR 7.80 (old: EUR 8.20). AlsterResearch confirms to BUY. The company’s final FY report will be published on December 13, after the closing bell. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG

Kontron reported positive results in Q3 ‘23. Revenues grew close to a mid-teen percentage yoy, and EBITDA rose at a steeper 75% yoy, with the margin improving 4.0ppt yoy to 11.6%. Steady demand, an easing supply chain, and process optimization initiatives bolstered the Q3 numbers. Order backlog remains impressive at EUR 1.7bn (1.4x ‘23E revenues) and gives good revenue visibility into ‘24. Management has reiterated its revenue guidance for ‘23 but raised it for EBITDA margin and net profits, for the second time since it was first issued in Jan ‘23. The Q3 results reflect the steady progress Kontron has been making in strengthening its IoT offerings. The recent strategic acquisitions of Telit Cinterion’s Cellular Automotive Module Unit, Comlab, Hartmann, W-IE-NE-R, Altimate, and Bsquare should push Kontron’s market presence and underpin its valuations. Meanwhile, the new share buyback plan to purchase up to 4m shares (c. 6% of current share capital) for a maximum of EUR 70m is also a positive for investors. AlsterResearch’s analysts maintain their BUY rating with an unchanged PT of EUR 34.00. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Krones reported a good set of results in Q3 ‘23. Sales and EBITDA were in line with consensus. However, order intake surprised positively, beating market estimates by 9%, as inflows picked pace sequentially; the yoy decline was also much smaller than anticipated. This indicates that customer demand remains favourable despite delivery times now running at over 75 weeks. Krones ended Q3 with a record high order backlog of EUR 4.1bn, providing clear revenue visibility through ‘25. The EBITDA margin also saw a yoy improvement in Q3 aided by cost pass-throughs and better expense management, more than offsetting the headwinds from still tight procurement markets (which the company expects to ease from Q4). Management has reiterated its ‘23 guidance – sales growth of 11-13% yoy, an EBITDA margin of 9-10%, and ROCE of 15-17% – and maintained its target of reaching 10-13% in EBITDA margin by ‘25. AlsterResearch’s analysts continue to hold a positive view on Krones and reiterate their BUY rating with an unchanged PT of EUR 129.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Krones%20AG

Staige One raised just over EUR 1m in growth capital through an offering of 243,250 new shares at EUR 4.23 per share. The total capital raised fell short of the original target due to challenging market conditions and reduced investor interest in small cap investments. Staige had previously entered the stock market through a reverse IPO, aiming to raise up to EUR 8m. Despite the lower-than-expected funds, the company remains committed to its growth strategy, focusing on expanding its presence in the DACH region and exploring additional B2C opportunities. Management is in continuing discussions with strategic investors, leaving room for potential capital increases in the future. Staige's current valuation, with an adj. 24E EV/sales multiple of 5.8x, reflects a 13% discount to comparable high recurring revenue SaaS companies. As a result, AlsterResearch’s analysts reiterate their BUY rating with a revised PT of EUR 6.50 (old EUR 6.30). The company aims to build a strong track record while waiting for market sentiment to improve. The full update can be found under https://www.research-hub.de/companies/Staige%20One%20AG