Infineon’s fundamentals are clearly improving, with AI strength broadening into industrial recovery and early automotive stabilization, while order intake continues to move in the right direction. However, the stock has already captured this better backdrop: the broader chips trade has become crowded, valuations have rerated sharply, and further upside now depends on continued positive revisions and sustained multiple expansion. With the shares materially above our revised EUR 60.00 price target, we see an unfavorable risk-reward profile and hence downgrade the stock from HOLD to SELL. The full update can be downloaded under https://research-hub.de/companies/infineon-technologies-ag

Ernst Russ raised its FY26 EBIT guidance to EUR 45-55m (previously EUR 34-44m) following the strategic sale of the 2008-built, 52% owned container ship MV "EF Emira". In our view, the implied book gain of roughly EUR 10-11m reflects the company's ability to realize hidden reserves. In addition, this transaction provides fresh capital for fleet modernization and ESG-compliant investments. Supported by high fleet availability of 97% and secured charter coverage, the operational outlook remains highly robust, with potential for further upside if additional sales occur. We believe this active portfolio management significantly improves earnings quality and long-term prospects. We therefore reiterate our BUY rating and slightly increase our PT to EUR 13.70 (previously EUR 13.50). The full update can be downloaded under https://research-hub.de/companies/ernst-russ-ag

SBO’s Q1 call added comfort to our constructive view. Management confirmed that recovery remains a H2 base case, while Q2 is still affected by Middle East logistics. Importantly, the Q1 Middle East impact was described as deferred rather than lost revenue, and the Q2 booking run-rate remains broadly in line with Q1. The call also provided more substance on diversification: bookings for diversified applications more than doubled yoy on a group level and reached a high single-digit share of group bookings, up from a low single-digit share in Q1 2025. We keep 2026E unchanged after our initial trim, leave 2027E broadly unchanged, but slightly raise 2028E. Our PT increases to EUR 40.00 (old: EUR 39.00); BUY. The full update can be downloaded under https://research-hub.de/companies/sbo-ag

HENSOLDT has outperformed the sector by ~26pp over 10 days despite the same cycle exposure that triggered a sector-wide selloff after Rheinmetall's earnings call. The outperformance is not justified by fundamentals in our view. Armoured vehicles are a core revenue driver but are the least-favoured spending category of the current conflict environment in Ukraine where drones are preferred. Hensoldt is perceived as a software-defined defense supplier, but with software accounting for only 8% of sales in FY30E, that perception does not look justified. Meanwhile, HENSOLDT trades at ~40x 2027E P/E versus Rheinmetall's ~22x on nearly double the top-line growth and same margins/ CCR ratios. Our DCF and peer-based analysis both point to a fair value of EUR 58.00-62.00. The stock is priced for a transformation that is, at best, still a decade away. SELL. The full update can be downloaded under https://research-hub.de/companies/hensoldt-ag

Südzucker (SZU) reported FY26 results broadly in line with prelims, confirming a difficult year with continued pressure on earnings, driven primarily by Sugar. CropEnergies provided a partial offset with improving profitability on lower input costs and a more supportive biofuels backdrop, while Special Products and Starch weakened and Fruit remained resilient, underscoring the value of diversification. Despite weaker earnings, operating cash flow remained positive, supported by working capital effects. Looking ahead, SZU expects a strong yoy rebound in Q1 FY27 EBITDA, marking the first clear signs of recovery. This should be driven by a stronger cost base and improving biofuels dynamics, while a sustainable turnaround ultimately depends on a recovery in sugar pricing. FY26 likely represented a cyclical trough, with improving conditions now setting the stage for gradual recovery. We reiterate our BUY rating and EUR 15.00 PT. The full update can be downloaded under https://research-hub.de/companies/suedzucker-ag

SBO’s Q1 results confirmed a trough-like earnings level, with sales broadly stable qoq but margins still under pressure from low Precision Technology utilization, Middle East-related logistics constraints, Houston ramp-up costs and FX headwinds. The key positive was order intake, which rose 18.5% qoq to EUR 117.6m, implying a book-to-bill ratio of 1.2x and supporting the H2 recovery case. We lower our 2026E EBITDA and EBIT by c. EUR 5–6m to reflect stronger transition-year margin pressure. However, improving bookings, intact mid-term energy-security drivers and recent share price weakness improve the risk/reward. We upgrade from HOLD to BUY, PT unchanged at EUR 39.00. The full update can be downloaded under https://research-hub.de/companies/sbo-ag

Multitude reported a soft Q1 26, with revenue down 7.8% yoy to EUR 61.6m and net profit declining 39.4% yoy to EUR 4.4m, mainly due to lower net interest income. However, results were in line with our expectations and reflected planned FY26 phasing. Asset quality continued to improve, with impairments down 18.8% yoy, while net loans and investments rose 23.5% yoy. Segment trends confirm a shift toward diversification, with Consumer Banking weaker, SME Banking still investing, and Wholesale Banking scaling profitably. Management confirmed the FY26 guidance. With no changes to our estimates, we remain BUY with an unchanged price target of EUR 14.40. The full update can be downloaded under https://research-hub.de/companies/multitude-ag

MS Industrie CEO Dr. Andreas Aufschnaiter presented FY25 and Q1 26 at yesterday’s earnings call, highlighting a clear shift from investment to execution. FY25 was a transition year, but Q1 2026 already showed improving revenue, gross margin, EBITDA and EBIT despite US ramp-up costs. The now fully-owned Trossingen site, automated machining platform, and long-standing single-source customer relationships provide a solid underlying for margin recovery. The US site in Charlotte adds a new growth driver, supported by orders for engines used in data-centre power generation. Diversification into data-centre infrastructure, defense, aerospace and selected industrial applications should improve revenue quality, with the potential to resume dividends from 2027. While the truck market remains fragile, ageing European fleets should support demand over time. We confirm our BUY rating with a PT of EUR 2.20. The recording is available here: https://research-hub.de/events/video/2026-05-20-14-00/MSAG-GR The full update can be downloaded under https://research-hub.de/companies/ms-industrie-ag

The German federal cabinet’s approval of the draft legislation marks another key step toward the planned driver education reform, with implementation still targeted for January 1, 2027. 123fahrschule (123fs) intends to fully shift theory education to E-Learning and has already terminated around half of its rental contracts, creating potential annual cost relief of c. EUR 0.60m before one-offs. While expansion into new metropolitan areas should partly reverse the rent trend, future sites should be more profitable through simulator use and scale effects. Foerst’s new simulator version and AI driving instructor could further strengthen the group’s positioning. We confirm BUY with an unchanged PT of EUR 5.20. The full update can be downloaded under https://research-hub.de/companies/123fahrschule-se

KNDS sold a ~5.8% Renk stake via accelerated bookbuild at EUR 44.95, raising EUR 269m and trimming its holding from 15.83% to 10%. The official rationale (balance sheet reinforcement ahead of the KNDS IPO) raises more questions than it answers. With a solid backlog and order intake leading to advaned payments, KNDS does not need the money. Three questions remain unanswered. Why was the German government, a natural buyer for a critical Leopard 2 supply chain asset, apparently passed over? Why does a “convinced long-term shareholder” cut a position by more than a third? And does this signal that KNDS is stepping back from land systems as its core growth vector? The Renk investment case is however unchanged and we await the KNDS IPO for more information’s regarding the future of tracked vehicles. We reiterate BUY with a EUR 53.00 PT. The full update can be downloaded under https://research-hub.de/companies/renk-group-ag