Puma’s Q3 2024 results were broadly in line. Sales remained flat yoy at EUR 2.3bn during the quarter, falling 2% short of consensus. However, on a currency adjusted (c.a.) basis, growth was resilient at 5.0% yoy and in line with market expectations. The topline growth was broad-based across regions, with good showing in the Americas. The direct-to-consumer business continued with robust momentum and wholesale channel returned to growth trajectory. Despite currency headwinds, the gross profit margin improved by 80bps yoy to 47.9%, supported by a favorable product mix. EBIT was broadly flat yoy at EUR 237m (a 3% beat) and the margin increased slightly by 10bps yoy to 10.3%, despite higher costs related to warehouse ramp-up and digitalization initiatives. The company confirmed its sales and EBIT guidance for FY 24, which is reassuring, given macro headwinds and muted consumer sentiment, particularly in China. The analysts move their EBIT estimate more to the mid-point of the guidance range. Overall, mwb research broadly maintains their estimates. The PT remains at EUR 55.00. The analysts reiterate their BUY rating on the stock. The full update can be downloaded www.research-hub.de/companies/research/Puma%20SE

Mayr-Melnhof's Q3 results were mixed, with revenues of EUR 1.03bn, up 1% yoy but flat sequentially. Margins declined as expected due to planned downtime, with adjusted EBITDA down 130bps sequentially. Operating cash flow decreased sharply due to an increase in working capital, mainly driven by a reduction in trade payables. The Board & Paper Division posted an operating loss due to maintenance shutdowns, exacerbated by weak demand and overcapacity, while the Food & Premium Packaging Division showed solid growth driven by new products. Pharma & Health Care Packaging continued to decline due to destocking, although margins remained stable. With the recovery likely to be U-shaped rather than V-shaped, MM's cost and cash management initiatives are expected to drive a gradual recovery in margins into FY25 despite continued market headwinds. mwb research’s analysts revised estimates result in a new price target of EUR 115.00 (old: EUR 136.00). The analysts reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Mayr-Melnhof%20Karton%20AG

Kontron reported a solid financial performance in Q3 2024, with significant increases in revenues and profitability, mainly driven by contribution from the recently consolidated Katek SE. The top-line in Q3 witnessed a significant 45% yoy increase to EUR 427.7m (+6% yoy organic), order intake was robust, with the book-to-bill ratio at 1.21x, backlog was impressive at EUR 2.1bn, EBITDA increased by 70% yoy to EUR 59.4m, and net profit was higher by 29% yoy at EUR 24.4m. Given good progress in 9M, management maintained its guidance for the full year. The company's strategic focus on IoT, synergies from Katek, and emphasis on operating efficiency, including reduction in unprofitable orders, are expected to drive further growth. mwb research broadly maintains its estimates. The experts reiterate their BUY rating, with an unchanged price target of EUR 35.00. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

This morning Koenig & Bauer published its results for the third quarter of 2024. While the operating business continues to struggle but is improving in a challenging market environment, the record order intake and the highest order backlog in the company's history were particularly impressive. However, FY24 will still be impacted by special charges (drupa / Spotlight focus program), but the first positive effects seem to be visible. The company reiterates its FY24 guidance, which points to a strong finish to Q4. Management also reiterated its mid-term targets of 6% EBIT margins and revenues of EUR 1.5 bn by 2026 at the latest, which mwb research sees as an increasingly realistic scenario given the first tangible improvements from the company's restructuring measures. The analysts therefore reiterate their BUY rating, but lower their PT from EUR 18.00 to EUR 16.00 as they adjust their estimates for one-off restructuring costs. The full update can be downloaded under https://www.research-hub.de/companies/research/Koenig%20&%20Bauer%20AG

Nordex announced its Q3 results with a slight decline in revenues of 3.1% yoy to EUR 1.67bn, which was around 13% below expectations, however, a rebound in revenues is expected in Q4. Thanks to strong growth in the previous quarters, revenues for first 9M were up 29.5% yoy. In Q3, profitability improved as EBITDA rose to EUR 72m with a margin of 4.3%, exceeding expectations. Management now expects the full year EBITDA margin to be at the upper end of guidance, close to 4%. Free cash flow also improved significantly to EUR 159m in Q3, enabling Nordex to break even on a 9M basis. Nordex stands out from its competitors thanks to its steady increase in profitability and strong order intake at high avg. selling prices. Despite geopolitical uncertainties in the US and Germany, Nordex's profitable growth prospects remain strong, leading to a reiterated BUY rating and a PT of EUR 22.00, implying an upside of 82%. The full update can be downloaded under https://www.research-hub.de/companies/Nordex%20SE.

CompuGroup Medical (CGM) reported a mixed set of Q3 figures, with total revenues declining by 0.8% year-over-year to EUR 283m, affected by reduced non-recurring revenues and delayed projects across key segments. Due to a reduction in high-margin one-time revenues and increased R&D investments, adjusted EBITDA decreased by 12% to EUR 55m, bringing the EBITDA margin down by 3PP to 19%. Despite these pressures, recurring revenues rose by 6% to EUR 213m, making up 75% of total revenue, signaling a strategic shift towards more stable revenue sources. Segment performance was mixed as well, due to several impacts, such strong prior-year one-offs. CGM’s FY24 guidance was confirmed, with expectations for organic revenue growth between -2% and 0% and adjusted EBITDA of EUR 220-250m, though Q4 targets may prove challenging to meet. For the time being, mwb research’s analysts reiterate their BUY rating with and unchanged PT of EUR 27.50. The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Rheinmetall’s Q3 results demonstrate its strength in converting a substantial order backlog into strong growth. Sales rose 40% yoy, with EBIT up 57%, supported by high demand in core defense markets. Both sales and EBIT met consensus expectations, though EPS fell short of consensus by 16%. The company’s record order backlog of EUR 52bn, up 41% yoy, provides robust revenue visibility and supports confidence in achieving FY24 targets. Rheinmetall’s book-to-bill ratio of over 2 further signals sustainable growth, and high Q3 inventory levels position the company well for a strong Q4. Management reaffirmed its FY24 guidance, targeting EUR 10bn in sales and a 15% operating margin. Expected increases in NATO defense spending among EU nations provide additional long-term support for Rheinmetall’s growth. mwb research’s analysts reiterate their BUY rating with a price target of EUR 650.00. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Rational has reported strong results for Q3 24 with accelerated revenue growth of 8% yoy to EUR 294.2m. For the first nine months, revenues increased by 5% to EUR 875.5m. The Americas continued to be the main growth driver, while Europe and Asia showed moderate growth. EBIT for the nine-month period increased by 12% to EUR 226.6m, with the EBIT margin increasing to 25.9%. The company confirmed its FY24 guidance, expecting mid-single-digit sales growth and an EBIT margin of around 26%. Despite the strong performance, mwb research’s analysts downgraded the stock to SELL from HOLD, as they believe that the positives are already priced in after a nearly 50% rise in the share price over the past year. mwb research’s PT has been raised slightly from EUR 755.00 to EUR 770.00 which now implies a downside risk of around 13% to their fair value calculation. The full update can be downloaded under https://www.research-hub.de/companies/research/RATIONAL%20AG

Suss MicroTec reported strong Q3 sales and margins, with sales reaching EUR 102.5m, up 46% year-over-year and surpassing expectations, driven by robust growth in both divisions. Despite a slight sequential decline, gross margins remained better than anticipated, leading to an EBIT margin above the full-year guidance of 14-16%. However, Q3 order intake was weaker, with a book-to-bill ratio of 0.8, as demand from China normalized and High Bandwidth Memory (HBM) manufacturers shifted focus to production ramp-up rather than new orders. With major HBM manufacturers expected to increase capital expenditure in 2025, mwb research’s analysts anticipate order activity to improve over the next quarters, supporting mwb’s growth expectations for FY25. Given the strong performance and undervaluation relative to peers, the analysts reaffirm their BUY rating and a price target of EUR 77.00. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

TeamViewer (TMV) reported a good set of numbers in Q3 2024. Revenues increased 7% yoy to EUR 168.7m (+8% yoy in constant currencies [c.c.]). The top-line was driven by accelerated growth of 23% yoy in c.c at the Enterprise segment, which witnessed significant traction in higher-value contracts. Profitability benefitted from the scaled back partnership with Manchester United, resulting in a stronger 15% yoy increase in adj. EBITDA to EUR 81.0m, registering a good 9% beat. Management tightened its guidance range for FY24, now expecting revenues of EUR 662m-EUR 668m (vs EUR 660m-EUR 685m earlier) and estimates an adj. EBITDA margin of at least 44% (vs at least 43% previously). The good results reinforce TMV’s position as a market leader in connected worker platforms and underscore the company's relevance in digital transformation. mwb research’s analysts adjust their estimates for the guidance update with limited valuation impact. Therefore, the analysts confirm their PT of EUR 15.00, and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TeamViewer%20AG