Multitude and AlsterResearch held an investor roundtable with CFO Bernd Egger and Head of Investor Relations Lasse Mäkelä. During the well-attended meeting, Multitude's representatives gave a deep insight into the current strategy and the attractive prospects of the company. A video of the meeting is available at www.research-hub.de/events. Multitude is well positioned for further growth in the coming years. This is particularly reflected in the strong guidance to increase net income from EUR 12m to c. EUR 30m in 2026. AlterResearch’s analysts believe that Multitude is attractively valued (P/E of only 5.8x in 24E; dividend yield of >6.5% 24E). Following smaller adjustments of the assumptions, the experts reiterate the BUY-rating with a slightly increased DCF-based price target of EUR 12.60. (old EUR 12.10). The full update can be downloaded under https://www.research-hub.de/companies/investment-case/Multitude%20SE

According to freshly published prelims, Atoss delivered another strong performance and exceeded its FY outlook with sales growth of 33% yoy to EUR 151.2m. The company benefitted from continuing growth of its cloud business and a significant increase in software licenses. This helped EBIT to grow even stronger by 68% yoy to EUR 51.8m, despite of elevated R&D investments and the build-up of personnel, resulting in an EBIT margin of 34.3%. Given a 2024 and 2025 guidance largely in line with AlsterResearch’s expectations, the analysts consider the valuation to be clearly exhausted at present. AlsterResearch increases the PT to EUR 212.00 (old: EUR 208.00), but downgrades to SELL (before: HOLD). The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20AG

Last week, CHAPTERS Group announced that the shareholdings in two portfolio companies was increased. Firstly, CHAPTERS expanded its share in Fintiba from 39.9% to 55%. After an initial shareholding through a capital increase, CHAPTERS increased its share in stock-listed Software Circle (formerly: Grafenia plc), a UK based serial acquirer of vertical market software (VMS) companies, to 29.9%. The increased shares will be contributed as part of a non-cash capital increase. In total, CHAPTERS will be issuing c. 1.4m new shares at a price of EUR 17.61 per share, which is in line with the recent capital increase in November 2023. While Software Circle reflects a strategic fit, AlsterResearch considers the increase in the shareholding in Fintiba to be a logical progression in order to leverage its potential and take the company to a new level. AlsterResearch confirms to BUY with PT EUR 22.00 (prev. EUR 21.00). The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

Mister Spex reported prelim. Q4/FY23 results, showcasing a successful year with sales reaching around EUR 223m, meeting mid to high single-digit growth targets as well as consensus and AlsterResearch expectations. The growth momentum rebounded in Q4, achieving a 7% yoy sales increase, driven by a 9% growth in the German market. Notably, average order value (AOV) rose by 10%, particularly for high margin prescription eyeglasses. The company expanded its omnichannel presence with eight new stores, totaling 75 by year-end. Adj. EBITDA remained positive, marking the third consecutive quarter, while the cash burn reduced significantly, putting positive cash flows within striking distance. In view of AlsterResearch, this reinforces Mister Spex's strategic position in the eyewear market, and should translate into continued improvement in financial metrics in FY24. Consequently, the experts reiterate their BUY rating with an unchanged PT of EUR 7.30. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Stabilus reported reasonable numbers for Q1 FY 2024. Revenues grew 5% yoy and adj. EBIT was up a modest 2% yoy; however, the margin narrowed by 30bps yoy to 10.9%. Strong showing in APAC and EMEA was clouded by weakness in the Americas due to strikes at client plants, and persistent inflationary pressure. Despite the moderate start, management is hopeful of a recovery in the later part of the year and has reiterated its guidance for FY 2024. The acquisition of DESTACO, a US-based industrial automation specialist, is well on track to be completed by end-February 2024, and management expects significant revenue, adj. EBIT margin and earnings synergies from this deal. AlsterResearch’s analyst slightly adjusts the estimates, which already includes costs and synergies from DESTACO, and increases the PT to EUR 72.00 (old: EUR 70.00). The rating remains BUY. The full update can be downloaded under https://www.research-hub.de/companies/Stabilus%20SE

Last week Formycon presented at the AlsterResearch Health Care Conference, for which a recording can be watched at https://research-hub.de/events. Yesterday evening, Formycon announced the raising of EUR 82.84m in fresh funds from Gedeon Richter Plc, a Budapest-based company active in pharmaceutical manufacturing, research and development, sales and marketing. Richter will hold around 9% of Formycon. The proceeds will be used for further development of the biosimilar pipeline, including the start of a further biosimilar candidate, FYB210, in H2 2024. AlsterResearch sees the increased willingness to make strategic investments as evidence of Formycon's operational progress and the successful implementation of its strategy to date. AlsterResearch’s analysts include the capital increase in their model and adjust the price target to EUR 91.00 (old: EUR 100.00) as a result of the higher number of shares. AlsterResearch confirms the BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

Westwing reported preliminary Q4 figures with a 4% yoy growth in GMV, driven by a 5% increase in average basket size. This continues the positive trend from Q3, stabilizing the GMV for FY23. The company expects its EBITDA to be in the upper half of the guided range, with positive free cash flow for both Q4 and FY23. Cost-cutting measures and the growing share of the "Westwing Collection" are improving performance and supporting margins. Despite still challenging market conditions, Westwing has returned to a growth trajectory. We confirm our price target of EUR 10.00 and a BUY rating. The full update can be downloaded under https://research-hub.de/companies/Westwing%20Group%20AG

Mister Spex is anticipated to report decent Q4/FY23 results following a lackluster Q3. Sales growth is expected to rebound by around 8% yoy to EUR 47-48m, aligning with the company's mid-single digit full-year guidance. Positive trends in adjusted EBITDA are predicted to continue, reaching EUR 0.2m in Q4 and totaling around EUR 1.1-1.2m for FY23, consistent with the low single-digit margin guidance. Despite the seasonally negative cash flow in Q4, Mister Spex is projected to maintain a strong cash position, with a year-end balance likely at the upper end of the EUR 105-110m guidance range. In terms of news flow, the appointment of a new CFO, Stephan Schulz-Gohritz, brings seasoned leadership to the team, which AlsterResearch believes could provide additional tailwind to become cash flow positive. Looking ahead, Mister Spex is likely to aim for profitable growth and cash flow preservation in FY24. AlsterResearch reiterates its BUY rating with unchanged PT of EUR 7.30. The full update can be downloaded under www.research-hub.de/companies/Mister%20Spex%20SE

Sartorius released its preliminary 2023 numbers with no surprises. As expected by AlsterResearch, the Q4 print was impacted by the absence of the COVID-19 business and continued stock optimization by customers. Order intake continues to gradually recover on a more normalized base. Management expects to achieve mid- to high-single-digit yoy growth in revenues and above 30% EBITDA margin in 2024. Sartorius is also targeting a revenue CAGR in the low teens (including M&A activities) over 2024-28 and EBITDA margin of c. 34% by 2028, which confirms the analyst’s assumptions. While management is optimistic on returning to profitable growth, AlsterResearch would like to adopt a wait and watch strategy on the pace of recovery over the next few years. The experts see growth more in line with the medical market (8-9%), instead of historic growth rates in the teens. Given this view, AlsterResearch believes that Sartorius’ high valuation multiples appear stretched and reiterate the SELL rating at an unchanged target price of EUR 235.00. The full update can be downloaded under research-hub.de/companies/Sartorius%20AG

Wacker Chemie reported preliminary Q4 figures with revenues down 24% yoy, below expectations. Polysilicon saw the sharpest decline due to lower solar volumes and prices, while the small Biosolutions division was the only unit to post growth. EBITDA in Q4 was in line with Q3 and broadly in line with expectations, but the margin halved compared to last year due to continued low capacity utilization, an unfavorable mix, still high material costs and pressure on selected prices. Despite the weak outlook and challenging environment in the chemical industry, Wacker Chemie has continued to invest heavily, signaling that it is preparing for a future upturn in demand. However, CEO Christian Hartel has noted a lack of signs of a recovery in demand, suggesting continued difficulties until at least Q1 2024. Wacker Chemie's recent underperformance (-38% from 52-week high) suggests that this could be an opportunity for investors looking beyond the next few quarters. AlsterResearch reiterates its BUY recommendation with an unchanged price target of EUR 135.00. The full update can be downloaded under https://www.research-hub.de/companies/Wacker%20Chemie%20AG