Mayr-Melnhof Karton (MM) reported strong profitability in Q1 2025, despite ongoing difficult market conditions. With revenues rising 1.7% yoy to EUR 1.04bn, adjusted EBITDA was up 26% yoy to EUR 119m, driven by improved performance in Board & Paper and Food & Premium Packaging. However, free cash flow turned negative at EUR -184m due to a EUR 226m increase in working capital, which was however partly driven by reduced factoring. The closing of the sale of TANN Group in H1 25 should strengthen the balance sheet. While MM’s packaging divisions showed mixed results yoy, with Food & Premium Packaging performing well and Pharma & Healthcare Packaging under pressure, MM Board & Paper returned to profitability owing to MM’s ongoing cost control and structural improvements. mwb research’s analysts maintain their BUY rating with an unchanged price target of EUR 115.00. The full update can be downloaded under https://www.research-hub.de/companies/Mayr-Melnhof%20Karton%20AG

Leifheit, founded in 1959, has established a strong position in the European household products sector, particularly in the German market, where the company holds a leading position. Leifheit benefits from a strong brand, long-term retailer relationships, and a well-developed distribution network. Known for high-quality, functional products, Leifheit has adapted to retail trends by placing greater emphasis on design and expanding its e-commerce presence. Investments in automation and digitalization have improved efficiency and consistency, resulting in significant improvements in gross and operating margins over recent years. The company leverages its consistently strong free cash flow to reward investors with a steadily rising dividend, currently yielding around 6%, while maintaining a minimum payout ratio of 75%. Building on its strong position in core markets, Leifheit is well-positioned to expand further beyond Germany into selected European markets. mwb research’s analysts initiate coverage of Leifheit with a BUY rating and a PT of EUR 30.00 offering an upside potential of 37.6%. The full update can be downloaded under: https://research-hub.de/companies/leifheit-ag

TAKKT reported challenging Q1 25 results which at least showed some stabilization, with organic sales declining by “only” 7.6% yoy. Earnings (EBITDA and EBIT) however fell sharply by 33.3% and 57.6%, respectively, due to lower gross margins (39.8%) and higher freight costs. On the bottom-line EPS remained just positive with EUR 0.02. Inventory build-up however pushed free cash flow into negative territory (EUR -5.0m) after having achieved a comfortable cash generation in last year’s period. Despite external challenges, including US tariffs, management confirmed full-year guidance, supported by strategic cost-saving initiatives and improved customer alignment under the "TAKKT Forward" program. mwb research’s analysts maintain their HOLD rating and PT of EUR 8.50, awaiting clearer signs of demand recovery. The full update can be downloaded under https://www.research-hub.de/companies/research/TAKKT%20AG

Rheinmetall delivered a strong set of preliminary Q1 results, with sales and operating profit clearly exceeding expectations, driven by the military segment. Order intake was robust, lifting the backlog to a new record level. Guidance for FY2025 was confirmed, but mwb research’s analysts see potential for an upgrade as German defense spending is expected to accelerate following the new government’s inauguration. Rheinmetall’s strategic positioning remains compelling, supported by broader EU rearmament efforts and bestin-class defense systems. The analysts maintain their EUR 2,000 price target and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

ATOSS Software’s Q1 2025 revenues grew 11% yoy to EUR 46.2m, broadly in line with consensus. However, EBIT of EUR 15.6m (+11% yoy) surpassed market expectations by 3%. Q1 performance was again driven by the SaaS business, with revenues from cloud/subscription up 30% yoy, now accounting for 46% of total revenues (vs 39% yoy in Q1 2024). Overall recurring revenues (subscription + maintenance) were up 20% yoy to EUR 31.3m. Despite the current global macro uncertainty, management left its 2025 guidance largely unchanged, targeting sales of “around” EUR 190m (vs >EUR 190m earlier), and reiterated its EBIT margin guidance of at least 31%. Medium-term targets include revenue growth at a minimum 13.0% yoy CAGR over 2025-2027 (c.18.0% CAGR thereafter until 2030) and the EBIT margin to improve to >35% by 2030, which were confirmed. With the medium-term outlook being more back-end loaded, mwb research’s analysts stick to their HOLD rating at a higher PT of EUR 125.00 (old: EUR 120.00). The full update can be downloaded under https://www.research-hub.de/companies/ATOSS%20Software%20SE

Bechtle AG reported preliminary results for Q1 2025, issuing a warning that earnings before tax for the quarter were significantly below consensus. Revenues of EUR 1.46bn were down c.3% yoy, coming in 1% behind consensus. However, EBT declined 33% yoy to EUR 55m in Q1 and missed market expectations by a wide 30%. Profitability was mainly impacted by increased personnel costs (in part due to last year’s acquisitions), as well as a marked rise in non-wage labour costs. Despite a lackluster start to 2025 and current macro challenges, management expects a pickup in demand in H2, particularly from public-sector clients. Against this backdrop, it reiterated its cautious outlook for FY 2025, guiding a weak 2.5% yoy business volume development with flat yoy revenue and EBT growth at the midpoint. While near-term uncertainty persists, Bechtle’s M&A-based expansion strategy and increasing demand for digital transformation among SME customers are likely to drive growth beyond 2025. mwb research’s analysts maintain their BUY rating on the stock but have slightly reduced their price target to EUR 46.00 (previously EUR 48.00). The full update can be downloaded under https://www.research-hub.de/companies/Bechtle%20AG

Ceconomy announced that CEO Dr. Karsten Wildberger will step down on May 5, 2025, to join Germany’s federal government. While CEO transitions often raise concerns, the analysts believe Ceconomy remains well positioned to continue its transformation without material disruption. Since 2021, Wildberger has reshaped the company’s strategy, moving Ceconomy toward a platform-based business model with five scalable, high-margin revenue streams, reducing dependency on cyclical consumer electronics sales. Succession planning is already underway, and with an Executive Committee in place, operational continuity appears secured. mwb research’s analysts view Wildberger’s appointment as external recognition of his achievements rather than a sign of instability. Transition risks are limited. The analysts reiterate their BUY rating on Ceconomy with a price target of EUR 3.75. The full update can be downloaded under https://www.research-hub.de/companies/Ceconomy%20AG

Viromed has entered into an exclusive distribution agreement with skin health specialist Landsberg First Class Aesthetic to commercialize its ViroCAP cold plasma device for cosmetic and aesthetic use across Europe, marking a significant expansion into the region following its recent entry into Asia through a deal with Korea-based UMECO Group. Landsberg, with a network of 7,500 B2B clients, aims to place 5,000 devices in the market over three years, generating double digit million Euro potential for annual spacer sales. ViroCAP offers broad cosmetic applications, including anti-aging, scar treatment, and hyperpigmentation, and may enhance the effectiveness of topical treatments. Combined with UMECO’s purchase commitments totaling over EUR 150m from 2026 to 2028, these developments support the strong commercial potential of Viromed’s CAP technology. mwb research’s analysts reaffirm their BUY rating with a target price of EUR 12.50. The full update can be downloaded under https://www.research-hub.de/companies/Viromed%20Medical%20AG

Pyramid AG made an important strategic move last week. With the acquisition of 100% of RNT Rausch GmbH, an established German IT specialist, from Securize IT Solutions AG, the company will strengthen its core business "Server and Storage" in the future. At the same time, Pyramid is selling non-core investments to Securize and now holds over 49% of the listed Securize IT Solutions. The realignment strengthens Pyramid as one of the top 3 providers of server and storage solutions from Germany. Synergies and the bundling of non-core investments in Securize will open up additional strategic options in the medium term. In the course of the integration of RNT, management raises the 2025 revenue guidance to EUR 88-92m and the EBITDA guidance to EUR 4.7-5.5m. mwb research’s analysts welcome the strategic shift and view the transaction as accretive based on their fair value assessment. Accordingly, mwb research raises the target price to EUR 1.80 (previously EUR 1.50) and confirms the BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/research/Pyramid%20AG

Bayer’s 2025 will be a rough year, marked by flat sales, margin pressure, and elevated litigation uncertainty. While the near term will test investor patience, Bayer is building momentum beneath the surface as management pushes ahead with new pharma launches, aggressive cost actions, and a multi-pronged legal strategy to lay the groundwork for a 2026–2027 recovery. Although execution risks remain high, mwb research’s analysts believe the current valuation already reflects a highly bearish scenario, and credible progress on strategic priorities could trigger a material re-rating. The analysts revised their estimates slightly to reflect a conservative stance with no material impact on valuation. Thus, mwb research’s analysts maintain their BUY rating and EUR 29.00 price target, emphasizing the importance of disciplined execution through the volatility. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG