United Internet (UI) reported reasonable results in Q1 24, with c.2% yoy growth in revenues and a 7% yoy increase in adj. EBITDA. These missed consensus expectations by 1% and 3%, respectively. Excluding the 1&1 mobile network rollout costs, the underlying performance was stronger with adj. EBITDA up 14% yoy. Moreover, fee-based contract additions remained strong at 200k units in Q1, reaching 28.7m users. Management expects healthy growth momentum to continue into ‘24 and confirmed its guidance for FY24 – revenues and operating EBITDA are expected to grow by 5% yoy and 9% yoy, respectively. On the business expansion front, UI is progressing well on its 5G mobile network rollout. In this regard, the long-term exclusive national roaming agreement between 1&1 Mobilfunk and Vodafone to enhance the group’s 2G, 4G, and 5G coverage should act as a catalyst. Furthermore, the impending decision by German regulator, BNetzA, to extend its 800MHz (4G) spectrum licence would be a key monitorable in the coming weeks. mwb research reiterates its BUY recommendation with an unchanged price target of EUR 28.00. The full update can be downloaded https://www.research-hub.de/companies/United%20Internet%20AG

Staggering Q1 kicks off new growth phase; chg est. & PT On Wednesday, ZEAL released staggering Q1 results above expectations with strong sales growth and better than expected profitability. Moreover, ZEAL substantially improved marketing efficiency which drove customer growth to record levels. In detail: Strong Lottery business: Lottery b [ … ]

Solid start into FY24 despite challenging end markets Topic: Nynomic published a solid start into the year with order intake returning to growth for the first time since Q3 2022. Similar to FY23, this year’s operational performance should again be back-end loaded. Preliminary Q1 sales grew by 6.5% yoy to € 23m thanks to consolidati [ … ]

Formycon has published its Q1 2024 statement. Revenues came down from EUR 32.4m to EUR 17.7m, as last year’s figure was bolstered by a EUR10m upfront payment from Fresenius Kabi. Operating costs reflected a step up in R&D related to FYB208 and FYB209, and an increase of capacities and personnel. The adjusted EBITDA came in at EUR -1.2m vs EUR -0.4m a year ago, with higher income from FYB201 partially offsetting the cost increase. Following the recent capital increase, the company’s cash situation remains comfortable, with additional funds available through a flexible shareholder loan. Overall, Q1 has confirmed the picture that was outlined at the presentation of the FY23 results few weeks ago. mwb research confirms the PT and rating (EUR 81.00, BUY). The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

Final Q1 out // Good start into 2024; chg. est. Topic: R. Stahl reported a solid final Q1 underpinning the strong demand for electrical explosion protection solutions, which should continue due to favorable structural trends. Management confirmed FY24e guidance, which looks well in reach (eNuW). To recap, Q1 sales grew 8.5% yoy to € 84.7 [ … ]

Puma had a slow start to the year. It saw marginal uptick in revenue growth to 0.5% yoy in Q1 2024 on a currency adjusted (c.a.) basis vs consensus of -1% yoy, although reported figure was in line. Unfavorable currencies continued to drag the overall results, resulting in a 9% yoy dip in EBIT. On the positive side, EBIT was still 7% better than consensus expectations. As Puma navigates through weak consumer sentiment and volatile demand in the backdrop of macro and geopolitical headwinds, management expressed increased confidence in reaching 2024 targets. Thus, guidance for 2024 has been confirmed. On unchanged estimates, mwb research confirms the PT of EUR 60.00 and the BUY rating on the stock. The full update can be downloaded www.research-hub.de/companies/research/Puma%20SE

Stabilus’ Q2 FY 2024 results were tepid. Revenues grew a mere 1% and adj. EBIT declined 5% yoy, with the margin deteriorating 70bps yoy to 12.4%. Strong revenue and profit growth in APAC was clouded by a still-challenging market environment in the Americas and persistent inflationary pressure. Momentum in EMEA also moderated. Nevertheless, management is hopeful of recovery in H2, mainly supported by contributions from its acquired assets – DESTACO and Cultraro – and improvement in the industrial business. Stabilus estimates DESTACO to add EUR 100m to sales in H2 FY24 and generate an EBIT margin of 20%. It anticipates FY24 results to be back-loaded and now expects revenue and the adj. EBIT margin to reach the lower end of the respective initial guidance range (EUR 1.4bn-EUR 1.5bn; 13%-14%). Following the debt funded acquisition of DESTACO, the net leverage ratio jumped to 2.8x (0.2x at end-Q1). The focus now would be on deleveraging to bring it to below 2.0x in the next 2-3 years, and subsequently, closer to its long-term target of 1.0x. mwb research adjusts the estimates, which already includes costs and synergies from DESTACO, and reduce the PT at EUR 70.00 (old EUR 72.00). The analyst’s rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/Stabilus%20SE

AUTO1 Group reported strong results in Q1 2024, beating consensus on all parameters. Revenues were 2% ahead of market expectations on 3% better-than-expected volumes, while gross profit beat by 10% and adj. EBITDA of EUR 17m surpassed consensus of EUR 4m. Volumes grew 4% yoy in Q1 (vs -3% yoy in Q4 2023), although average selling prices were still softer (-7% yoy) resulting in 3% yoy drop in revenues. However, AUTO1 made material progress in terms of profitability, with its gross profit up 23% yoy and gross profit per unit (GPU) increasing 19% yoy to EUR 993, as well as reported its first ever adj. net profit of EUR 1m. Given good progress in Q1, the company revised its gross profit and adj. EBITDA guidance, while maintaining its volume forecast. Mwb research believes that AUTO1 will continue to improve its efficiency and reach its profitability goals. The analysts upgraded estimates for the revised guidance. mwb research confirms the PT of EUR 8.00 and BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/AUTO1%20GROUP%20SE

CompuGroup (CGM) had a slow start in 2024. It reported modest revenue growth of 3% yoy on an organic basis (ex- Telematics Infrastructure sales of last year) in Q1 on a high comparable base, while adj. EBITDA was up a mere 1% yoy (margin: +70bps yoy), missing consensus by 4%. Profitability was largely supported by the divestiture of CGM’s Turkish business activities; hence, we view it as low quality. Management reiterated its guidance for 2024, which was reassuring. However, mwb research’s analysts continue to believe that reported margins will remain weak in 2024. That said, the experts acknowledge the market position and long-term prospects of CGM, being a high-quality software company that serves a very resilient and stable customer base in the medical and healthcare market. Given the removal of the mid-term guidance (adj. EBITDA margin ~27% in FY25), the analysts lower their estimates, but given the share price weakness (-45% yoy), they still see upside potential, which is why mwb research reiterates the BUY rating with a further lowered PT of EUR 36.00 (old EUR 42.00). The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Carl Zeiss Meditec (CZM) reported weak results in Q2 FY24, with revenues and adj. EBIT falling 7% and 13% short of consensus, respectively. Revenues declined 6% yoy, due to unfavorable FX, while it just about stayed flat yoy organically. Continued destocking effects in China impacted both top-line and profitability. Adj. EBIT declined 43% yoy (margin: -6.7ppt yoy to 10.4%) on weak gross margins (-4.5ppt yoy) and adverse operating leverage. Nevertheless, management expects revenues and EBIT to recover, as the destocking exercise is almost complete. It also pointed towards stronger order intake in March and April. CZM has now given a more specific revenue guidance for FY24 at EUR 2.20bn-EUR 2.25bn, including DORC, while reiterating that adj. EBIT should remain at previous year’s levels. While some near headwinds persist, once these constraints and product mix effects subside, CZM's long-term potential and synergies from DORC should come into focus. mwb research’s analysts adjust the estimates for recent results and outlook statement. The analyst changes the PT to EUR 101.00 (old: EUR 110.00), while the rating remains HOLD. The full update can be downloaded under https://www.research-hub.de/companies/Carl%20Zeiss%20Meditec%20AG