CVC Capital Partners plans a takeover offer for CompuGroup Medical (CGM) at EUR 22.00 per share, representing a 51% premium to the 3-month average share price, and plans a subsequent delisting. The majority shareholders of CGM, the Gotthardt family, support the offer but will retain their 50.1% stake within the context of a strategic partnership with CVC. The offer, which is subject to a 17% acceptance threshold and regulatory approval, is expected to close in H1 25, followed by a potential delisting. The announcement by the founding family to remain on board and to partner with CVC in the event of a successful takeover reflects mwb research’s view that the shares are worth more than the EUR 22.00 per share offered. mwb research’s fundamental valuation of EUR 27.50 per share is 25% higher than the current offer price, which is why the analysts do not recommend – at this point in time - accepting the offer. From a fundamental point of view, the analysts confirm their PT of EUR 27.50 and their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/CompuGroup%20Medical%20SE

Rheinmetall is on a rapid growth trajectory, set to surpass EUR 10bn in revenues in 2024 (+40% yoy) and grow by 23% in 2025, backed by a massive EUR 61bn order backlog in FY24(mwb est.). Rising global defense budgets, driven by geopolitical pressures and Germany's likely pro-defense policy shift in 2025, further bolster its prospects. Today´s drop in its share price by -3% offer a great entry point. With industry-leading products like tanks, ammunition, and drones (as it´s recent collaboration with Auterion shows), Rheinmetall continues to capture market share. While risks such as the defense supercycle peak and U.S. tender uncertainties exist, Rheinmetall’s robust execution and strong visibility position it for sustained growth. mwb research’s analysts reiterate their BUY rating with a price target of EUR 751.00. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

At mwb’s German Select Conference (watch here: https://research-hub.de/videos), Siltronic energized its equity story, shedding light on its latest developments and industry dynamics. The company stands at a critical juncture, with recovery gradually taking shape, driven by growing AI demand and a rebound in consumer electronics like smartphones and PCs, despite challenges from elevated inventories and soft automotive and industrial sectors. As the only Western-based wafer supplier, Siltronic commands a 14% market share in a highly concentrated industry and projects steady long-term growth of 4-5% CAGR, fueled by increasing silicon content in EVs, AI servers, and other advanced technologies. Verena Stütze, Head of IR, reassured investors on price stability, backed by long-term agreements covering 66% of revenue, and downplayed threats from GaN and SiC, with GaN aligning with Siltronic's expertise and SiC remaining a small market. While 2028 targets are ambitious and depend on market recovery and inventory normalization, Siltronic’s valuation (P/B 0.8x) offers limited downside and a compelling upside, supporting mwb research’s BUY rating and a PT of EUR 92.00. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

At Verbio SE's virtual Annual General Meeting (AGM) last Friday, the company discussed the challenges it faced in the past fiscal year (ended June 30), including disruptions in the biofuels market due to dumped biodiesel imports from China. Looking ahead, the company expects the biofuel and greenhouse gas (GHG) quota markets to stabilize in 2025, supported by a German regulation that suspends the transfer of GHG quotas from 2024 to 2025 and 2026. Verbio expects increased demand and rising prices for GHG quotas. Verbio's strategy of diversification into biodiesel, bioethanol, biogas and international expansion, especially in the US, helps to reduce political dependency and opens up new markets. The company is also investing in a new bio-based specialty chemicals plant in Germany, which is expected to open in 2026/2027. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 24.00 and maintain their view on Verbios' long-term growth prospects. The full update can be downloaded under https://www.research-hub.de/companies/Verbio%20SE

Following Hensoldt´s participation in mwb research´s German Select Conference, the analyst provided an update on Hensoldt, a leader in defense technology. The company continues to deliver strong performance, with Q3 2024 revenues up 29% yoyand order intake surging 134%. Its robust order backlog of EUR 6.5bn ensures visibility for sustained growth. Hensoldt’s limited exposure to conflict-specific revenues (5.4% from Ukraine) highlights its resilience and independence of the war(s), since its long-term strength lies in supporting NATO countries’ modernization efforts. Structural defense underinvestment in Germany (54% of revenues) and geopolitical developments, such as increased European defense spending, Trump´s election as well as upcoming elections in Germany create significant tailwinds for Hensoldt according to the analyst. With strong fundamentals and a favorable industry outlook, mwb research' analysts reaffirm their EUR 44.00 price target and maintain their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG.

Formycon AG’s inclusion in the SDAX index, effective December 23, 2024, marks a significant milestone in the company’s growth trajectory. This achievement, following its recent uplisting to the Prime Standard, enhances Formycon’s visibility and positions it among Germany’s leading small-cap companies. The SDAX listing is expected to boost liquidity, attract more investors, and reinforce the company’s financial stability and growth potential. mwb research anlaysts reiterate their BUY rating with a target price of EUR 89.00. On December 12th at 11:00 AM, mwb research will host a roundtable with Formycon’s CEO, Dr. Stefan Glombitza, and CFO, Enno Spillner, who will be summarizing FY 2024 and providing an indication for FY 2025. The event will be in German, and the registration link can be found https://research-hub.de/events/registration/2024-12-12-11-00/FYB-GR.The full update can be downloaded under https://www.research-hub.de/companies/Formycon%20AG

CFO Clemens Billek presented at mwb research’s German Select conference (watch under https://research-hub.de/events/video/2024-12-03-15-30/KTN-GR), highlighting Kontron's impressive transformation from traditional IT services to a leader in Industrial IoT (IIoT). With over 4,500 clients, including major blue-chip companies, Kontron is well-positioned in the growing B2B IoT market. In Q3 2024, Kontron reported 44.9% revenue growth, a significant increase in EBITDA to EUR 59.4m, and a strong order intake with a book-to-bill ratio of 1.21x. The integration of Katek is progressing well, improving margins and reducing costs. Kontron expects continued growth, forecasting EUR 1.8bn in revenue and EUR 190m EBITDA in 2024. mwb research’s analysts reiterate their BUY rating with a PT of EUR 35.00 reflects strong future potential. The full update can be downloaded under: https://www.research-hub.de/companies/research/Kontron%20AG

Dräger presented at mwb research's German Select conference, where Head of IR Thomas Fischler gave an update on the company's long-term outlook. Dräger is focusing on technology leadership (e.g. "Dräger One") and aims to improve EBIT margins by 1% annually to reach a margin of 10% by 2030, prioritizing profitability over growth. North America is expected to grow from 2025 due to full product approval, while the Chinese market is expected to stabilize with a slight recovery in 2025 despite regulatory challenges. Cost optimization and reduced R&D expenses will further improve margins. Dräger's high-quality products, strong market position and undervalued P/E (<10x) make it an attractive investment opportunity. The BUY rating remains unchanged with a price target of EUR 65.00. The full update can be downloaded under https://www.research-hub.de/companies/Draegerwerk%20AG%20&%20Co.%20KGaA

Elmos CEO Mr. Schneider made a strong impression at the German Select Conference, energizing the company’s equity story and wrapping up with an insightful Q&A (recording is available under https://research-hub.de/videos). Despite the short-term slowdown in the automotive industry, Elmos stands out with resilience, holding firm to its 2024 guidance and achieving modest growth (+1.5% yoy), while peers struggle with repeated downward revisions and declining sales. The CEO addressed competition dynamics, emphasizing Elmos’ plan to stay ahead through its niche expertise and by strengthening its footprint in China with a local-to-local approach. He highlighted that competition among OEMs poses minimal risk to Elmos, as “an order lost in Europe is an order won in China,” reflecting the company’s global reach and ability to capitalize on shifting market dynamics. With its transition to a fabless model, Elmos has significantly enhanced operational flexibility and improved its risk profile, paving the way for a record-high FCF milestone in 2025, driven by reduced tax rates, optimized capex, and streamlined working capital. Building on this momentum, mwb research’s analysts remain bullish on Elmos and reiterate their BUY rating with a PT of EUR 105.00. The full update can be downloaded under https://research-hub.de/companies/Elmos%20Semiconductor%20SE

At the mwb research German Select conference, Manuel Bösing, Head of Investor Relations at tonies, updated investors on the equity story in a presentation and Q&A session. The recording can be viewed here: https://research-hub.de/videos. The presentation highlighted tonies' strong growth trajectory, with a CAGR of 37% from 2019 to 2023, and guidance for 2024 of at least 33% growth and 40% yoy growth in Q4. Key growth drivers include expansion in the US (increasing POS by 23% and targeting the Hispanic community by doubling Spanish-language content by 2025), further penetration in Europe and new markets such as Australia and New Zealand. To broaden its appeal to older children, tonies has launched educational "Clever Tonies" and "Book Pocket Tonies" with full-length audio books, keeping the growth story intact. Operating leverage and increasing royalty-free content such as Lalalinos should translate into increasing margins going forward. mwb research’s analysts confirm their recently raised target price of EUR 11.00 and reiterate their BUY recommendation. The full update can be downloaded under https://www.research-hub.de/companies/tonies%20SE