In line with its preliminary announcement, Sartorius reported weak Q3 results. Q3 revenues fell 23% yoy to EUR 810.7m (-19% yoy in c.c.) and adjusted EBITDA plunged 39% yoy to EUR 216.7m, with the adjusted EBITDA margin down 6.9ppt yoy to 26.7%. Revenue and profitability in both segments suffered in the absence of the COVID-19 tailwind seen in the prior year, leading Sartorius to reiterate its recently trimmed tepid guidance for FY2023. Medium-term targets are also under review and AlsterResearch’s analysts expect an update in January 2024. Management has highlighted that the life science industry has experienced significantly increased volatility in recent years. AlsterResearch’s analysts maintain their view that the good years for Sartorius are taking a break. In view of the many pull-forward effects from the Corona period and the resulting dwindling medium-term growth potential, AlsterResearch’s experts maintain their PT of EUR 240.00, which leads AlsterResearch to a HOLD rating, as Sartorius share has experienced a considerable decline in value in the past few weeks. The full update can be downloaded under https://research-hub.de/companies/Sartorius%20AG

Metro AG (Metro) reported a decent set of results in Q4. Sales growth picked pace in Q4, and the FY23 top-line print was 3% ahead of AlsterResearch’s estimate. The FY23 sales growth of 8.8% yoy on a constant currency portfolio-adjusted basis reached the upper-half of its 5-10% guidance range. The Q4 sales momentum was particularly healthy in the East region on inflation-led pricing actions, followed by the West; the delivery and online marketplace channels also contributed to the growth. However, the adj. EBITDA commentary for FY23 came as a slight disappointment. Management now expects to reach the lower half of its adj. EBITDA guidance range, due to higher costs related to cybersecurity and lower-than-expected insurance compensation related to the Q1 23 cyberattack. While the near-term outlook remains challenging, AlsterResearch acknowledges Metro’s efforts in broad portfolio streamlining and its focus on its multi-channel growth strategy. These should gradually take the company towards its 2030 ambitions. AlsterResearch’s experts maintain their BUY rating with an unchanged PT of EUR 8.20. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG

Interactive Strength Inc is active in the field of luxurious and premium smart home gyms with its existing brand FORME and CLMBR, which is expected to be acquired in Q4 2023. The fitness industry has seen an incredible boom over the past decade and therefore, sports, gyms and fitness have become not just an activity to train and exercise but also, they became complete lifestyle experience. Especially during the pandemic, when studios and clubs were closed, home exercise and mainly smart home fitness have taken on a new importance. With an innovative and revolutionary product offering, AlsterResearch’s analysts believe that Interactive Strength is just getting on the starting block for a successful future. However, due to the early stage of the company and hence still a high burn rate, which should command in further cash injections, AlsterResearch’s analysts initiate coverage with a Spec. BUY rating and a PT of USD 2.30 offering an upside potential of 119.0%. The latest update can be downloaded under https://www.research-hub.de/companies/Interactive%20Strength%20Inc

Duerr reported mixed preliminary Q3 '23 results, with sales growth of only 2.4% yoy to EUR 1.15bn and an EBIT margin of 7%. While the former indicates a deceleration in growth compared to Q1 and Q2, the latter exceeded AlsterResearch’s expectations. Still, the company is on track to achieve its FY23 targets of 6-7% EBIT margin and EUR 4.5-4.8bn in sales. However, Duerr has adjusted its outlook for 2024 due to challenges at its HOMAG subsidiary, which has seen a significant decline in order intake that could trigger capacity adjustments. As a result, the 2024 EBIT margin target has been lowered to 4.5- 6.0% and the original 8% target has been postponed by two years, contingent on HOMAG's recovery. Despite the short-term uncertainties, the long-term outlook remains promising, leading AlsterResearch’s analysts to reiterate their BUY rating, albeit with a revised price target of EUR 38.00 (old EUR 44.00). The full update can be downloaded under https://www.research-hub.de/companies/Duerr%20AG

MHP Hotel AG reported Q3 results, with revenues of EUR 35.3m, up 8% YoY. However, key metrics like occupancy, ADR, and RevPAR remained unchanged compared to 2022. This suggests that the period of strong growth post-COVID may be over. The company also reported a loss of EUR 0.95m in H1, citing higher-than-expected inflationary cost pressures and other factors. MHP is expecting stable demand for the rest of 2023 and is optimistic about the opening of the Koenigshof hotel in Munich in 2024. AlsterResearch’s analysts adjust their estimates and set a new price target of EUR 3.00 (old: EUR 3.54). AlsterResearch still recommends to BUY, based on a DCF model and supported by a discount to peer groups. The full update can be downloaded under https://research-hub.de/companies/MHP%20Hotel%20AG

coinIX CEO Karl Gero Wendeborn and CFO Felix Krekel presented at the AlsterResearch Investment Manager Conference, discussing blockchain and crypto market developments, current use cases, and the company's portfolio and financial developments. coinIX's business model focuses on investing in blockchain startups, liquid cryptocurrencies, and token projects. The company has adapted its strategy during the market crisis and is investing in blockchain infrastructure solutions and acting as an Ethereum validator. The company's portfolio company, Finexity, which tokenizes real-world assets, was highlighted as a good development. AlsterResearch’s analysts reiterate to BUY as the valuation is not reflecting the recovery of the crypto markets and the positive outlook for H2 2023. AlsterResearch’s price target of EUR 2.36 offers almost 100% upside potential. The full update can be downloaded under research-hub.de/companies/coinIX%20GmbH%20&%20Co%20KGaA

On October 18 Cicor Group announced the acquisition of STS Defence, a UK-based service provider for mission-critical electronics and communications systems for aerospace and defense (A&D) applications. With the acquisition, Cicor is adding sales of GBP 27.5m (~CHF 30m) coupled with an attractive margin profile above Group average. Again, Cicor maintains its strategy as market consolidator while boosting profitability and augmenting its capabilities. AlsterResearch maintains the PT of CHF 70.00 and the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/Cicor%20Technologies%20Ltd

Yesterday, CHAPTERS Group participated in AlsterResearch’s "Investment Managers" conference. CFO Marlene Carl presented at a well-attended roundtable, followed by a lively discussion including the company’s strategy, the deal pipeline, and the financial situation to drive further growth. CHAPTERS main target is building a group of established portfolio companies that hold leading positions in their respective niche markets. These are mostly owner- and founder-managed companies that have been established for years and are facing succession issues. While CHAPTERS’ financial position is relatively comfortable and leaves room for further transactions and investments, the company can also rely on its anchor shareholders, who have already supported the company in raising capital in the past. In the view of AlsterResearch, the management's diligent and long-term approach promises sustainable growth for the Group, while dedicated anchor shareholders provide valuable support along the way. AlsterResearch’s analysts confirm their PT and BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/CHAPTERS%20Group%20AG

TAKKT released a profit warning alongside weak Q3 ’23 results. Sales dropped by nearly 11% yoy to EUR 313m, with EBITDA falling by even 20% yoy to EUR 30.2m. This decline was primarily due to reduced order intake in the European Industrial & Packaging and American Office Furniture & Displays divisions, exacerbated by deteriorating consumer sentiment and geopolitical uncertainties. The pending U.S. government shutdown is expected to further impact demand. Consequently, TAKKT has adjusted its FY23 outlook, expecting mid-single-digit organic sales decline and an EBITDA of EUR 107- 117m. Long-term goals are also under review, no longer adhering to the original target of EUR 2bn in sales by 2025. Instead, the company aims to emphasize profitability and cash flow. Despite these challenges, TAKKT remains robust, with adjusted estimates and a new price target of EUR 15.00, justifying AlsterResearch’s BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

ExxonMobil's acquisition of Pioneer Natural Resources underscores the growing attractiveness of U.S. shale oil, which over time has become greener and more profitable. It has always been less exposed to geopolitical risks, which is currently moving to the center of attention. As a result, consolidation in the shale industry is expected to continue or even accelerate. Deutsche Rohstoff is trading at a 75% discount to the purchase price in the Pioneer transaction, and at this valuation the company could even become an attractive target. AlsterResearch’s analysts reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Deutsche%20Rohstoff%20AG