About You (AY) met its guidance, which has been lowered twice in the past quarters. On the top line, revenues increased by 1.6% yoy, slightly above consensus. Margin pressure from discounts and high inventory levels abated, as gross margin improved by 0.8pp to 38.7%. On an adjusted basis, EBITDA was positive for the full year, supported by improvements on all cost lines, mainly in marketing and fulfillment. However, the outlook for FY24/25 in terms of revenue and operating profit was disappointing as it barely touched consensus at the upper end of the range. However, AY provided a mid-term outlook for FY25/26 onwards, targeting “clear” double-digit top line growth and “significant” profitability improvements. The company is confident that it can rekindle growth, but more likely in 2025/26, while 2024/25 will remain challenging. Cutting their short-term estimates, mwb research comes to a new PT of EUR 6.50 (old: EUR 7.00). mwb research confirms the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/ABOUT%20YOU%20Holding%20SE

Mister Spex reported a moderate Q1 in line with expectations. Sales grew by 2% yoy to EUR 51.1m, with a good performance in the domestic market offsetting an 8% decline internationally. Sunglasses grew by 9%, while high margin corrective eyewear declined by 1%, impacting gross margins which fell to 52%. Despite this, operating cash flow improved significantly, reducing cash burn to EUR 5m and leaving EUR 106m in cash on the balance sheet. Management maintains its outlook for FY24, expecting low to mid-single digit sales growth and a low single digit EBITDA margin, supported by the Lean 4 Leverage program. While challenges remain, mwb research believes market share gains and cash management efforts warrants a BUY recommendation, albeit with a slightly adjusted price target of EUR 6.50. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Following the blockbuster FY 23, Knorr-Bremse published solid 1Q24 results with revenue increasing 3.5% yoy EUR 1.97bn (consensus: EUR 1.94bn), and the order book rising 3.3% yoy to EUR 6.73bn (adjusted for Kiepe Electric). Despite the still-challenging economic market conditions, the total order intake reached EUR 2.1bn (Q1 23: EUR 2.18bn), mainly driven by robust demand in the rail market. In Q1, the Company's operating EBIT margin, net profit, and free cash flow witnessed meaningful improvement due to sales growth, efficient cost measures, and better pricing. Moreover, the Company announced the acquisition of the rail signaling technology business of Alstom Signaling North America on April 19, 2024. With the positive start to the year, the Company has confirmed its FY 24 guidance (excluding the impact of the acquisition of Alstom Signaling North America). mwb research analysts upgrade their margin assumptions and reiterate to BUY with new price target EUR 80.00 (old: EUR 75.00). The full update can be downloaded under https://www.research-hub.de/companies/Knorr%20-%20Bremse%20AG

Bechtle recorded a slight decline in revenues of 2.3% yoy to EUR 1.5bn, but with higher-margin software revenues the company achieved an improvement in gross profit of +4.2% yoy to EUR 277m. With a slightly higher cost base, mainly due to higher personnel costs, EBIT grew less strongly by 3.9% yoy to EUR 84m. At the end of the day EBT also improved by 2.8% to EUR 82m, increasing the EBT margin to 5.5%, which is fully in line with expectations and the full-year target. Management therefore remains optimistic about the outlook, citing the important role of digital transformation and the growing demand for technological advances. The company reaffirms its forecast for significant growth in business volume, revenue, and earnings, which can be translated into revenue growth in the range of 5-10% yoy in 2024 and a stable yoy EBT margin of approx. 5.8%. As Bechtle is one of the leading IT players in Europe and customers from the private and public sectors are still in the early stages of digitization, mwb research continues to believe in Bechtle's growth story. The analyst confirms the PT of EUR 59.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

TeamViewer's (TMV) Q1 2024 results were in line with consensus in terms of revenues, but fell short by 6% on the adj. EBITDA line. Revenues grew by 7% yoy while billings fell by 1% yoy, due to lower contribution from multi-year-deals. Nevertheless, new billings (+25% yoy), particularly in the high contract value categories, continued to impress. Looking ahead, TMV is hopeful of making good progress in targeting existing and new customers from various industries and regions. Management expects billings to pick up pace in the second half of the year and profitability margins to improve further in H2 on savings from the revised Manchester United deal. Therefore, it confirmed its full-year guidance for 2024 – revenue growth of 7% to 11% yoy and an adj. EBITDA margin of 43% (+1ppt yoy). But Permira’s divestment plans remain a concern even if its impact on share prices is likely to be countered through a buy-back program (EUR 67.7m repurchased in Q1 under its EUR 150m buy-back plan). After finetuning the model, mwb research maintains the BUY rating at a new target price of EUR 15.00. (old EUR 17.10). The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

Suess MicroTec reported final Q1 figures, which beat expectations at the time of the pre-announcement with a remarkable 46% revenue growth and margins above the upper end of the guidance range, marking a strong start to FY24. Only operating cash flow was a slight disappointment due to lower prepayments received. Advanced Backend Solutions in particular surprised positively, with order intake benefiting from the ongoing AI boom and margins boosted by operating leverage and production efficiencies. Forecasts from major high bandwidth memory (HBM) producers Micron and Samsung point to sustained demand for HBM, supporting Süss MicroTec's growth trajectory. The confirmed guidance now appears conservative, prompting mwb research analysts to raise estimates, resulting in a new PT of EUR 55.00 (old: EUR 44.00). mwb research reiterates the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Westwing reported positive results in Q1 2024. Revenues and gross merchandise value grew 6% yoy each on an enhanced product mix despite a yoy drop in order volumes. Also, active customer base increased by 2% yoy to 1.3m, registering the first yoy increase since the end of the pandemic and pointing to the effectiveness of the company’s marketing campaigns and improved brand positioning. Adj. EBITDA was up 24% yoy, with the margin improving 90bps yoy to 5.8% in the quarter. Despite a good start to 2024, management retained its cautious outlook for 2024 amid the still stressed consumer demand environment. It continues to guide for revenues of EUR 415m-EUR 445m (-3% to +4% yoy) and adj. EBITDA of EUR 14m-EUR 24m. For 2024-2025, Westwing has planned several initiatives to reduce business complexities, improve scalability, expand its footprint in Europe, and focus on premium brand positioning. In mwb research’s view, these initiatives should take the company on a sustainable revenue and profit growth path. mwb research confirms the PT of EUR 10.00 and BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Zalando returned to growth in Q1 2024. While the B2B business stood out showing double-digit growth (+13.4% yoy), the B2C business also developed positively (GMV growth: +1.3% yoy). Adjusted EBIT improved to EUR 28.3m, reflecting a margin expansion of +1.3pp to 1.3%, mainly driven by favorable order economics and scaling of the ZEOS fulfillment business, offset by higher marketing costs. Looking ahead, the management described the current environment as at least stable. In the current quarter, the company has seen a modest acceleration in Q2, while expecting a stronger impact from the collection transition to spring/summer in May. The company reiterated its FY outlook. mwb research’s analysts leave their estimates unchanged and confirm their PT and rating (EUR 32.00, BUY). The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE

Koenig & Bauer (SKB) published its Q1 24 figures lower than the prior year due to the challenging market environment. The company recorded a 10% yoy decline in revenues to EUR 253m in Q1 24, slightly below the consensus and mwb research’s estimate of EUR 258m. As a result of reduced order intake in the Sheetfed segment in Q3 23 as well as a lower percentage of completion achieved in production in the Banknote Solutions business unit yoy, revenue was down in the Sheetfed and Special segments but was slightly higher in the Digital & Webfed segment compared to the same period last year. Koenig & Bauer maintained the FY 24 guidance (given in February) at operating earnings of between EUR 15-30m and revenue of around EUR 1.3bn. The company maintained the medium-term target for revenue of around EUR 1.5bn and an EBIT margin of 6-7% in FY26. Mwb research maintains its BUY rating but cuts its PT to EUR 18.00 (old EUR 20.00) amid lower estimates. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Pyramid AG presented indicative Q1 results in an earnings call. Revenues are estimated at around EUR 16-17m (previous year: EUR 20m), whereby the comparison with the previous year is influenced by catch-up effects from the previous year. EBITDA will be around EUR 1m. AKHET, the custom server solutions business, is experiencing the strongest demand, driven by the ongoing AI boom, while Polytouch is struggling with some demand issues. Faytech, on the other hand, shows regional differences, with Germany and China growing dynamically, while the USA continues to struggle due to the loss of a major customer. The guidance for the current fiscal year remains cautiously optimistic with revenues of EUR 78-80m and EBITDA of EUR 5.6-5.8m. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 2.40, but slightly lower their estimates to the lower end of the guidance range. The full update can be downloaded under https://www.research-hub.de/companies/research/Pyramid%20AG