RedCare Pharmacy's shares dropped by over 25% since the release of its prelim. Q1 results early April. Also, final figures at the end of April did not help to convince investors to get back into the stock. In contrary, the negative trend persisted, which mwb research’s analysts believe was mainly due to several factors: slowing revenue momentum with Q1, little impact of e-RX sales in the DACH region and increased marketing expenses pressuring margin development. In addition, rumors of Amazon Pharmacy entering the German market further impacted the stock, which in total led to several broker downgrades and revised consensus estimates, now expecting a 2024 EPS of EUR -0.37 (mwb est. EUR -0.05). Nonetheless, RedCare's strong market position could benefit it long-term, prompting mwb research’s analysts to upgrade from SELL to HOLD with unchanged PT of EUR 114.00. The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

cyan AG published its full-year report for 2023. The 2023 results were in line with the preliminary results announced in April. FY revenues were reported at EUR 4.7m, up 24% yoy, stemming from a high proportion of recurring revenues (93%). EBITDA from continuing operations decreased to EUR -4.5m, due to higher external services costs (COGS) and one-off impairments (EUR 0.6m). The FY24 outlook indicates revenues between EUR 6.6-7.4m, representing a 50% year-over-year increase at the midpoint, and notable improvement in EBITDA (exclusive of special effects). In light of the customer wins reported to date and the upcoming launches, mwb research’s analysts believe the guidance to be somewhat conservative. Nevertheless, the analysts have made slight adjustments to their FY24 estimates, which remain at the upper end of the range. On updated overall estimates, mwb research’s analysts raise their PT to EUR 3.85 (old: EUR 3.50). The rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/cyan%20AG

Suess MicroTec shares have surged nearly fourfold since October 2023, driven by the successful divestment of its MicroOptics division, which significantly improved financials, and the company's strategic position in the AI sector. In FY23, over 30% of Suess MicroTec's order intake was linked to AI applications, particularly in High Bandwidth Memory (HBM) production. With key industry players projecting substantial growth in AI processors and HBM supply, Suess MicroTec is poised to benefit significantly. Valuation now reflects this positive outlook after the recent strong share price development. It seems reasonable to take a breather until the actual growth trajectory becomes more visible. mwb research’s analysts now rate Suess MicroTec a HOLD with unchanged target price of EUR 55.00. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

CTS Eventim (CTS) witnessed healthy business momentum in Q1 2024. Revenues grew 12% yoy and adj. EBITDA was up at a stronger 36% yoy in Q1, underpinned by strong ticket sales (+26% yoy to 22.7m). The Live Entertainment segment also posted decent growth in its top line. Management is optimistic about the demand environment and guides for a moderate yoy revenue and adj. EBITDA increase in 2024. Q1 numbers and encouraging outlook highlight the superior market position of CTS in the ticketing market. Moreover, promising partnerships, including the one with AXS to offer ticketing services for the 2028 Summer Olympic and Paralympic Games in Los Angeles, and the recent proposal to acquire Vivendi's festival and international ticketing business - See Tickets (EUR 137m in revenues in 2023), should provide continued impetus. CTS’ share price has risen by 37% yoy and valuations appear fair. mwb research tweaks estimates for the latest developments and reiterates the HOLD rating on CTS at a revised PT of EUR 83.00 (old: EUR 76.00). The US Department of Justice's lawsuit against Live Nation could reignite concerns about CTS Eventim's market power and a potential regulatory backlash. The full update can be downloaded under https://www.research-hub.de/companies/CTS%20Eventim%20AG%20&%20Co%20KGaA

Lanxess shares have fallen more than 10% since the earnings report two weeks ago and are down nearly 50% from their 2023 peak following a series of weak quarters, most recently a lackluster Q1. Ongoing pricing pressure and weak volumes due to sluggish demand and destocking issues remain challenges. However, management expects a modest improvement in demand and forecasts adjusted EBITDA growth of 10-20% year-on-year in 2024, with sequential profitability improvements in Q2 and Q3. Lanxess is implementing cost-cutting measures, a significant dividend cut and plans to sell its Urethane Systems business to address the current challenges. These initiatives and a diversified global footprint are reasons for cautious optimism. With an unchanged price target of EUR 30.00, mwb research upgrade the rating from HOLD to BUY. The full update can be downloaded under https://www.research-hub.de/companies/Lanxess%20AG

Fresenius Medical Care (FME) received updated credit ratings. Both Moody’s and S&P, important US-based credit rating agencies, upgraded FME’s rating outlook from negative to stable, based on the good growth momentum and the improved operational performance. With the release of Q1 figures, FME reaffirmed its FY24 outlook, and the management also reiterated the medium-term target of achieving an operating margin between 10-14% by FY 25. For the time being, FME delivered as expected. The turnaround at FME is progressing as expected by mwb research and should gradually be reflected in the numbers. The company is getting an additional tailwind from rating agency upgrades, which mwb research sees as a highly qualitative signal. However, this is largely reflected in the analyst’s assumptions. mwb research’s analyst confirms the estimates and the price target of EUR 39.00 and therefore maintains the HOLD rating. The full update can be downloaded under https://www.research-hub.de/companies/Fresenius%20Medical%20Care

Today, Gerresheimer (GXI) announced that it signed a purchase agreement to acquire the Bormioli Pharma Group, an Italy-based specialist for pharmaceutical primary packaging made of glass and plastic. Gerresheimer expects to leverage substantial synergies given the strategic fit and complementarity, which will accelerate its ongoing transformation into an integrated systems and solutions provider. The transaction valuation is not too far away from Gerresheimer’s own valuation, which suggests that Gerresheimer is not overpaying. Due to the attractive financials, the company is likely to upgrade its medium-term guidance after closing. mwb research confirms the PT of EUR 120.00 and the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/Gerresheimer%20AG

mwb research initiates coverage of Siltronic AG with a BUY recommendation and a PT of 94.00 offering an upside potential of 24%. Siltronic, a pioneering Western-based supplier of hyperpure silicon wafers, holds a global market presence with over 50 years of industry expertise and a 14% share in a highly consolidated market. Its unique value proposition lies in its advanced technology and innovative capabilities. The company excels particularly in the leading-edge 300mm wafers and 200mm wafers tailored for the power segment. With the electronics industry gaining momentum and the semiconductor industry projected to double by 2030, driven by AI, autonomous vehicles, and electromobility, Siltronic is strategically positioned to leverage these megatrends, enhancing growth through initiatives such as FabNext and the site expansion in Freiberg. According to the mwb research DCF model, Siltronic is trading below its fair value with a 24% upside potential, presenting a compelling investment opportunity, especially if megatrend trajectories materialize as anticipated. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

123fahrschule (123fs) informed on the latest events in a very informative investor call. The topics were 1) the acquisition of FOERST GmbH, 2) the potential of new business models with driving simulators and 3) the current developments in the FY 2024. For the use of simulators in training, the regulatory change will have to be awaited (expected this year). However, the sale of simulators in Germany and international sales will have an impact on the figures from closing (expected July 1, 2024) in H2 2024, which is why mwb research's analysts are adjusting their estimates. The experts see the acquisition of FOERST as strategically important rather than a major contributor to revenues and earnings in 2024 and 2025. 123fs remains practically the only beneficiary of the liberalization and digitalization of the driving school market, which is why mwb research sees significant growth potential and reiterates the BUY rating with an increased price target of EUR 6.80 (old EUR 6.60).The full update can be downloaded under https://www.research-hub.de/companies/research/123fahrschule%20SE

Last week, Vulcan Energy Resources announced that it has progressed into the second and final stage of its financing process, now being in formal discussions with structuring banks. In parallel, Vulcan advanced its project-level equity financing process after a first due diligence phase. The company intends to build long-term strategic relationships with potential partners from the engineering and energy sector. With detailed due diligence ongoing, Vulcan is anticipating finalizing all components of its financing process in Q4 2024. Subsequently, closing/draw down on funds is expected during Q1 2025. Successful project financing should remove major obstacles and risk factors to bring more institutional investors on board. Although the share price has shown an outstanding performance in recent weeks, mwb research continues to see upside. The recommendation remains BUY with a PT of EUR 9.90. The previous update can be downloaded under https://www.research-hub.de/companies/research/Vulcan%20Energy%20Resources