Nemetschek has released its preliminary numbers for 2023, with revenues and EBITDA coming in broadly in line with consensus and estimates. The full-year top line and EBITDA margin met the upper end of their guidance ranges. Annual recurring revenue also saw good progress (+27% yoy in constant currencies [c.c.]), and the share of recurring revenue edged higher to 77% in full-year 2023. That said, as highlighted in the previous report (published on 22 December 2023), the outlook for the construction industry in Germany and Europe remains bleak through 2024 owing to multiple macro headwinds. AlsterResearch expects Nemetschek to generate good business on the back of construction companies’ pent-up digitalization efforts. The business shows no signs of the market weakness. However, with long-term EBITDA estimates raised to over 34%, the analyst sees no further upside potential and does not expect any significant catalysts to drive the company’s valuation higher. AlsterResearch incorporates the preliminary figures into the model and calculates a new price target of EUR 68.00 (old EUR 61.00). It is due to the recent share price performance that the rating remains SELL. The full update can be downloaded under https://www.research-hub.de/companies/research/Nemetschek%20SE

Dermapharm and AlsterResearch hosted an Investor Roundtable with Britta Hamberger, Head of Investor Relations. During the well-attended meeting, investors got a deep insight into the current growth strategy and the attractive prospects. Main topics were the ongoing integration of the recent acquisitions Arkopharma and Montavit. The three segments, Branded Pharmaceuticals, Parallel Imports and Herbal Extracts, combine diverse activities that support each other with sales and cost-saving synergies that are continuously exploited. The dividend policy with a payout ratio of 50-60% (eAR 55%; EUR 1.35 per share) was also confirmed. This represents an attractive dividend yield of c. 3.4% (eAR FY23). Dermapharm has already stated that it will reach both the upper end of its full-year sales guidance of EUR 1.08-1.11bn and of its adjusted EBITDA guidance of EUR 300-310m. AlsterResearch maintains the price target at EUR 49.00 and reiterates the BUY recommendation. The full update can be downloaded under research-hub.de/companies/Dermapharm%20Holding%20SE

CompuGroup Medical (CGM) ended 2023 with its key line items largely meeting guidance. Organic (org.) revenues declined 6% yoy in Q4, as expected given a high comparable base, while the group fared well in terms of adjusted (adj.) EBITDA margin performance, supported by efficient cost management and AI-led restructuring. The 2024 guidance was encouraging: org. revenue growth of +4%-6% yoy, adj. EBITDA of EUR 270m-EUR 310m, and adj. EPS growth of at least 10% yoy – all pointing to steady momentum ahead. However, various special effects for restructuring (EUR 26m in Q4), were surprising and disappointing. In addition, CGM's reported EPS was weak as the financial result deteriorated mainly due to higher interest rates. CGM is a leading healthcare software solutions provider in Europe and well placed to benefit from favorable demand for e-health solutions. Therefore, AlsterResearch remains positive on CGM’s investment case, but clearly lowers the expectations. The rating remains BUY, with a DCF-backed price target of EUR 51.00 (old: EUR 59.00). The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Siemens Energy’s detailed Q1 FY 2024 results were in line with its strong preliminary release, which had surpassed consensus on almost all lines. Order intake (a 24% beat) was exceptionally strong during the quarter, up 24% yoy on an organic (org.) basis, led by the Grid Technologies (GT) and Transformation of Industry (TI) segments; it also benefitted from timing effects. Siemens Energy closed Q1 with a record high order backlog of EUR 118bn (c. 3.8x FY 2023 revenues), providing good visibility ahead. Profit excluding special items was impressive (compared with loss expected by analysts), on the back of narrower losses at Gamesa and healthy profit growth at GT and TI. Management has reiterated its guidance for FY 2024 and highlighted that it is progressing well on addressing quality issues at its onshore wind business and ramp-up challenges in the offshore business. While Gamesa will remain an overhang in the near to medium term, as Siemens Energy expects it to break even only in FY 2026, AlsterResearch acknowledges that other segments (over 75% of Siemens Energy’s revenues) have been witnessing strong demand, facilitating the global energy transition. AlsterResearch broadly maintains estimates for FY 2024 and confirms the PT of EUR 17.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Siemens%20Energy%20AG

TeamViewer (TMV) reported mixed results in Q4 23 – revenues and billings were 2% ahead of consensus, while adj. EBITDA missed by c. 10%. However, TMV met or exceeded its ‘23 guidance. Small and medium-sized businesses (SMB) continue to benefit from up-selling and cross-selling initiatives, and TMV’s Enterprise business is witnessing good signings of larger sized deals. The ‘24 outlook was reassuring, with management expecting a further improvement in the adj. EBITDA margin. The recently announced new EUR 150m repurchase plan (6% of its current market cap) and management’s commitment to return its high cash flows to shareholders and deleverage should be viewed positively by investors. This could potentially counter the negative sentiment around TMV’s key shareholder, Permira, which plans to reduce its representation in the Supervisory Board and could potentially sell its remaining 14% stake in TMV. Incorporating the ‘24 outlook, AlsterResearch tweaks its estimates, which leads the experts to a new TP of EUR 16.70 (old: EUR 15.50). The rating remains a BUY. The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG

The owner of the Hotel am Schlossgarten in Stuttgart, a subsidiary of LBBW Immobilien, is in exclusive talks with MHP Hotel (MHP) to manage the hotel. MHP was chosen over Althoff Hotels for its "high-quality, yet young and fresh concept". The hotel, previously part of the Althoff portfolio, will undergo a major refurbishment until 2027. MHP plans to rebrand it as part of Marriott's Autograph Collection, making it the second Autograph Collection hotel in MHP's portfolio. With 130 rooms, AlsterResearch estimates the revenue potential to be around EUR 10 million once fully operational. MHP's management of the hotel aligns well with its existing portfolio, including a Le Meridien in Stuttgart. The potential addition of the Hotel am Schlossgarten adds to MHP's exciting pipeline, which includes further hotel openings in 2024 and 2025/26. AlsterResearch reiterates the BUY recommendation with a price target of EUR 3.00. The full update can be downloaded under https://research-hub.de/companies/MHP%20Hotel%20AG

WashTec concluded FY23 on a high note, with sales hitting a record EUR 490m, up 2% from FY22. Remarkably, EBIT surged by nearly 11% to EUR 42m, resulting in a robust 9% EBIT margin. This profitability boost stemmed from effective management of increased energy/material costs, higher-margin chemical sales, and efficiency gains in North America. Despite Q4 revenues dipping 7% year-on-year, EBIT remained steady at EUR 15m, maintaining an 11.4% margin, signaling the resilience of WashTec’s business model. Notably, free cash flow surged to EUR 46m, up from EUR 16m, underlining WashTec's strong business model (FCF yield >10%). Anticipating continued strength, AlsterResearch expects a dividend of at least EUR 2.20 per share and reiterates its BUY recommendation with an unchanged PT of EUR 55.00, citing significant undervaluation. The full update can be downloaded under https://www.research-hub.de/companies/WashTec%20AG

Metro AG reported solid Q1 FY 23/24 results. Revenue growth picked a modest pace, growing 6.2% yoy in constant currencies (c.c.) vs 5.4% yoy in Q4 FY 22/23, and the reported top line (flat yoy due to adverse FX) was 1% better than consensus. Revenue growth was broad-based across regions and channels and was largely led by inflation-led price hikes. However, adjusted (adj.) EBITDA (-13% yoy to EUR 404m; 3% miss) was weighed down by the expiry of a license fee, transformation costs, and general inflation. Management has reiterated its FY 23/24 outlook, characterized by cost pressure and strategic investments. Metro hopes to withstand a persistently challenging environment through its transformation initiatives, especially in Germany, focus on multichannel HoReCa customers, and implement its sCore strategy, which AlsterResearch believes will propel the company towards its long-term targets. AlsterResearch maintains the BUY rating with an unchanged PT of EUR 7.70. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG

Enapter pre-announced its FY23 results and was able to generate better than expected sales of EUR 31.5m (consensus EUR 30.3m / eAR EUR 30.6m) and positive EBITDA of EUR 0.4m in 2023. These positive results are supported by the recently signed agreement with its first exclusive distribution partner, Solar Invest International SE, for the US market, which Enapter estimates to contribute approx. EUR 25m in sales. Enapter's distribution strategy has thus taken the first hurdle, and this year Enapter was able to move forward with another joint venture in China with the Wolong Electric Group. However, growth will be somewhat slower than expected, as the production expansions will not be ready for mass production until 2025. Based on the continued strong growth prospects from 2025 onwards, AlsterResearch reiterates the BUY rating and maintains the target price of EUR 22.50. The full update can be downloaded under https://www.research-hub.de/companies/Enapter%20AG

CTS Eventim announced robust preliminary FY23 figures with Q4 revenues showing a 22.5% yoy growth, in line with 9M figures. This growth, propelled by steady demand for live entertainment events, primarily stemmed from the Ticketing division, which experienced a remarkable 32.5% growth for the year. Normalized EBITDA for FY23 surpassed expectations at EUR 501.4m, supported by further improvements of the margin in Ticketing. The postponement of German peer DEAG's re-IPO due to macroeconomic and geopolitical concerns highlights CTS's strong competitive position. AlsterResearch increased the PT to EUR 76.00 (old: EUR 72.00) and confirms the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/CTS%20Eventim%20AG%20&%20Co%20KGaA