Solid Q1 // indicative decision weighs on the stock; chg Topic: bet-at-home reported Q1 figures broadly in line with estimates. Ramped-up marketing spending burdened bottom line but should fuel topline growth during UEFA EURO championship in Q2/Q3. In detail: Sales came in at € 11.7m (-12% yoy, 1% qoq), slightly above our estimates of &e [ … ]

Q1 2024: Strong start to the current financial year; forecast confirmed; price target and rating confirmed   CENIT AG has made a good start to the current fiscal year. With sales of € 50.55 million (previous year: € 43.42 million), the previous year's figure was significantly exceeded by 16.4%. Even though inorganic effects contrib [ … ]

Bayer reported a decent set of numbers in Q1 2024. Sales declined 4% yoy to EUR 13.8bn (-1% yoy currency and portfolio adjusted [c.p.]) and fell 2% short of consensus, mainly dragged by FX (-4ppt impact), though prices and volumes were broadly flat yoy. However, it fared better in terms of profitability. Adj. EBITDA declined by 1% yoy to EUR 4.4bn (a 6% beat) on soft revenues, yet the margin improved by 1ppt yoy to 32.1%. As demand and pricing trends remain uncertain, management reiterated its tepid outlook for 2024 – sales growth of -1% to +3% yoy (c.p.) and adj. EBITDA declining by 9% to 3% yoy (FX adj.). Over the next 2-3 years, management intends to focus on its pharma pipeline, address litigation issues, and deleverage. It has initiated a restructuring plan to enhance profitability and flexibility and have a leaner operating model. For now, the company is not considering any structural changes (such as separation of either Consumer Health or Crop Science), which could have had a larger impact on valuations. Bayer’s road to recovery still looks bumpy, given the uncertainties surrounding its c.57K pending Roundup/Glyphosate-related litigations. Despite the challenges, mwb research maintains the BUY recommendation for investors with a good risk appetite. On largely maintained estimates, mwb research reiterates the BUY rating on the stock at an unchanged price target of EUR 42.00. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG

ProSiebenSat.1 (PSM) reported full Q1 results in line with pre-announcement, with revenues and adjusted (adj.) EBITDA beating market expectations. Despite the slow start of DACH TV ad sales in Q2, due to the timing of Easter in April, PSM should see better trends in May and June. Moreover, despite the strong Q1, management confirmed its FY 2024 outlook (revenues: EUR 3.95bn +/- EUR 150m; adj. EBITDA: EUR 575m +/- EUR 50m) against tough comparables and major sporting events being aired by competing channels in Q2 and Q3. At its recent AGM, PSM’s major shareholder MediaForEurope (MFE) failed in its attempt to spin off the group, due to resistance from other shareholders. That said, increasing pressure of major shareholders on management should lead to a gradual sale of non-core businesses (including Verivox and Flaconi) until only the TV business remains. mwb research’s analysts believe that disputes at the top management are likely to increase, which should impair PSM in a rapidly changing competitive environment. Hence, mwb research’s analysts maintain their SELL rating with an unchanged price target of EUR 6.00. The full update can be downloaded under https://www.research-hub.de/companies/research/ProSiebenSat.1%20Media%20SE

TUI's financial results for the second quarter of 2024 exceeded consensus expectations, with revenues of EUR 3.65bn, up 16% yoy, driven by a robust 25% growth in the Holiday Experiences segment and an exceptional 53% increase in Cruises. The company's underlying EBIT also exceeded expectations, improving by EUR 54m yoy to EUR -189m, with significant contributions from Hotels & Resorts and Cruises, partly offset by a slight decline in Markets & Airlines due to previous divestments. Despite a gradual slowdown in momentum, bookings for the summer of 2024 are healthy, up 5%, with ASPs also up 4%. The company's strong free cash flow of EUR 973m in Q2 has supported ongoing deleveraging, with TUI targeting further credit rating improvements. TUI has confirmed its guidance and is on track to meet or even exceed it. mwb research’s analysts reiterate their BUY recommendation with an unchanged price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Mixed Q1 results // strong FCF generation; chg. est. Topic: INDUS reported a mixed Q1 with sales below but EBIT above estimates as well as strong free cashflow supported by a lower seasonal working capital increase. Q1 sales decreased by 9% yoy to € 410m (eNuW: € 434m) due to customers’ current reluctance to buy and spend as a [ … ]

Muted start into the year but solid order intake; chg. est. Topic: MAX released mixed Q1 results with muted sales and slight pressure on margins in line with expectations. However, order intake moderately improved qoq from a low level in the last three quarters supported by continuous follow-up orders from ELWEMA. Q1 group sales declined slig [ … ]

tk nucera published its Q2 23/24 results. As expected, revenues continued to grow by 11% yoy due to progress in major projects (e.g. Saudi Arabia) in the new AWE (green hydrogen electrolyser) segment. However, profitability suffered much more than before, resulting in a negative EBIT of EUR -10.6m (Q2 22/23 EUR 2.3m), also related to the low margin large projects in the AWE segment. These were offered at low prices in order to establish a track record and secure future highly profitable long-term service contracts. Order intake in the AWE segment was also below mwb research’s expectations at EUR 11.6m. This is due to a general reluctance to invest and increased skepticism in the green hydrogen sector. The still significant order backlog of around EUR 1.2bn will ensure growth for the next few years, but longer-term growth will require stronger order momentum. mwb research’s analysts reiterate their BUY rating but change their PT to EUR 18.00 due to the strong profitability impact of large orders and lower new orders. The full update can be downloaded under https://www.researchhub.de/companies/thyssenkrupp%20nucera%20AG%20&%20Co%20KGaA

Brenntag’s Q1 24 results were 6-7% below consensus amid persistent pricing pressure and soft demand in the backdrop of a challenging macro-economic and geopolitical environment. Sales declined 12% yoy to EUR 4bn in Q1, dragged by weaker prices, which more than negated the impact of better volumes. Op. gross profit declined 6% yoy and op. EBITA fell at a steeper 25% yoy, due to the under-absorption of fixed costs and higher depreciation charge. Management expects H1 to remain challenging and a gradual recovery in H2. It is cautiously optimistic of an improvement in operating performance over the course of ‘24 and has, therefore, downgraded its guidance for the FY. It now targets to reach the lower end of its initial op. EBITA range of EUR 1.23- 1.43bn, which was somewhat disappointing and could mean flat-to-declining profitability. All eyes are now on its strategic transformation, mainly the disentanglement of segments, and its progress on its mid-term targets. mwb research’s analysts adjust their estimates but reiterate to BUY, albeit with lower PT of EUR 85.00 (previous: EUR 90.00). The full update can be downloaded under https://www.research-hub.de/companies/Brenntag%20SE

Cancom had a good start to 2024 on a favourable base, with the positive development mainly supported by the acquired KBC Group (now CANCOM Austria Group), which was consolidated from 01 June 2023. Revenues grew 39% yoy, led by inorganic expansion, while organic top-line was down c. 6% yoy on weak demand in Germany. However, inflationary headwinds and FX losses resulted in a slower 26% yoy growth in EBITDA to EUR 30m. Despite industry challenges, due to subdued demand from German Mittelstand, the company expects an acceleration in orders in H2 2024, as customer demand for IT service providers continues to rise. Margin expansion is expected in FY 2024, with the gross and EBIT margins expected to improve on synergies from CANCOM Austria. Consequently, management reiterated its guidance for 2024 for revenues and EBITDA to grow c. 23% yoy each. While mwb research’s analysts remain optimistic about Cancom's growth prospects, they are changing their rating from BUY to HOLD with an unchanged price target of EUR 33.00. The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE