Brenntag reported decent set of numbers in Q4 2024 with flat yoy sales in constant currencies (c.c.), and an operating (op.) gross profit growth of 1% yoy c.c., 1% ahead of consensus. However, volume-driven cost increases and inflationary pressure weighed on op. EBITA, dragging it down 9% yoy in c.c. to EUR 264m, 5% below consensus. In FY 2024, sales declined 3% yoy in c.c. to EUR 16.24bn and op. EBITA was down 13% yoy to EUR 1.1bn, ending at the lower end of its guidance range. Management expects depressed consumer sentiment, economic uncertainties, together with competition from Chinese imports, to prolong recovery. It guides for modest improvement in volumes and slightly better qoq pricing trends and op. EBITA to reach EUR 1.1bn-1.3bn (+9% yoy at the mid-point) in FY 25. On the strategy front, Brenntag continues to invest in cost containment programmes and is carrying out targeted segment disentanglement. These should help the company capitalize on emerging opportunities as markets regain momentum. mwb research’s analysts maintain their BUY rating with a new PT of EUR 79.00. The full update can be downloaded under https://www.research-hub.de/companies/Brenntag%20SE

Puma’s Q4 2024 results were in line with prelims, Q4 sales rising 16% yoy (+10% c.a.) to EUR 2.29bn, driven by broad-based growth across regions and channels. However, despite a 15% EBIT increase to EUR 109m, margins remained flat at 4.8%. FY24 saw moderate 3% revenue growth, but management’s cautious FY25 guidance—projecting low-to-mid single-digit sales growth and an EBIT range of EUR 520m-600m—fell short of consensus. Puma aims to restore profitability through its "nextlevel" program, focusing on product simplification and cost control, targeting an EBIT margin of 8.5% by 2027. With the stock down ~50% YTD, valuation appears attractive, prompting a reiterated BUY rating at a lower PT of EUR 35.00 (old: EUR 50.00) after mwb research’s analysts trimmed their EBIT trajectory to reflect a slower recovery. The full update can be downloaded www.research-hub.de/companies/research/Puma%20SE

Rheinmetall’s FY24 earnings call confirmed its strong position as a key player in the defense sector, surpassing expectations. The company’s strategic focus on the "3 Ps" - Products, Price, and Politics - reinforces mwb research’s bullish outlook. Products: Rheinmetall is at the forefront of European defense needs, securing high-profile meetings and contracts while demonstrating unmatched production efficiency. Price: Its high vertical integration delivers a clear cost advantage over competitors, particularly in ammunition and tank production. Politics: With rising defense budgets and increasing equipment expenditures, Rheinmetall’s market share is set to grow significantly, supporting long term revenue projections in a range between EUR 34bn to EUR 70bn by 2032. Given these factors, mwb research’s analysts raise their price target to EUR 1,990 (previously 1,280) and maintain their BUY rating ahead of Germany’s crucial defense budget decision next week. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Redcare Pharmacy’s FY24 results were largely in line with preliminary figures, with sales up 32% yoy to EUR 2.37bn, reaching the lower end of guidance. Q4 revenue grew 27% yoy to EUR 675m, fueled by strong Rx (+37% yoy) and non-Rx (+22% yoy) sales. However, adjusted EBITDA fell 38% yoy to EUR 33m (1.4% margin) due to higher e-Rx marketing spend and a weaker flu season, leading to a Q4 EUR 4.9m EBITDA loss. e-Rx adoption in Germany continues to accelerate, driving Rx sales up 142% yoy in the country. RDC guides for 2025 sales growth of over 25%, with German Rx sales doubling to EUR 500m. The adjusted EBITDA margin is expected at 2-2.5%. mwb research’s analysts revise their estimates for a more measured profitability outlook, maintaining their EUR 144.00 PT but downgrading to HOLD (before: BUY). The full update can be downloaded under https://www.research-hub.de/companies/Redcare%20Pharmacy%20N.V.

GEA reported strong Q4 2024 results, with order intake and sales surpassing consensus by 17% and 3%, respectively. Order intake grew organically by 29.3% yoy on good traction in large orders (7 won in the >EUR15m range) and also benefitted from a lower comparable base. Revenues were up 9% yoy organically, led by its service business (+19% yoy). Adjusted (adj.) EBITDA came in higher by 15% yoy at EUR 239m, with the margin improving +1.4ppt yoy to 15.9% on better gross margins. FY 2024 org. sales were up 4% yoy and adj. EBITDA was higher by 8% yoy (margin of 15.4%; +1ppt yoy). For FY 2025, management guides for org. revenue growth of 1%-4% yoy and an adj. EBITDA margin of 15.6%-16.0%, with a yoy expansion of 40bps expected at the mid-point, which appears realistic. GEA achieved its FY 2026 targets two years in advance; however, its FY 2030 goals appear highly ambitious in the context of current macroeconomic risks. mwb research’s analysts reiterate their HOLD rating on GEA at a higher PT of EUR 55.00 (old: EUR 50.00) after incorporating the latest results. The full update can be downloaded under https://www.research-hub.de/companies/GEA%20Group%20AG

Rheinmetall delivered strong FY 2024 results, driven by surging defense demand and record profitability. The order backlog hit an all-time high and could have been even higher, as key projects will be booked in Q1 2025, potentially pushing it to EUR 67bn. Defense margins remain strong with further upside, and while some analysts expected slightly higher revenue, the company is still in its ramp-up phase, with major growth ahead. With CAPEX at 9% of sales - far exceeding peers - Rheinmetall is clearly positioning itself to secure a dominant share of the potential EUR 200bn German special fund. FY 2024 met expectations, but the real focus is on long-term expansion. Its strong product portfolio and aggressive investments make it well positioned to be the clear winner of the defense cycle. mwb research’s analysts maintain their EUR 1,280 price target and reiterate their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Knorr-Bremse’s BOOST 2026 program is progressing, focusing on operational streamlining and long-term profitability through strategic divestments and acquisitions. The company has made significant portfolio changes, including selling subsidiaries and expanding its rail signaling operations. Rail Vehicle Systems (RVS) delivered a strong performance last year, while Commercial Vehicle Systems (CVS) continues to face challenges. Geopolitical and economic risks, as well as uncertainties surrounding the potential implementation of a new economic program in Germany, could affect the Company's performance in either direction. If these programs are realized, they may benefit RVS and indirectly support CVS, but their impact remains unclear. Given that much of the positive news is already reflected in the share price and in view of the risks, mwb research’s analysts downgrade their rating from HOLD to SELL, with an unchanged PT of EUR 76.00. The full update can be downloaded under https://www.research-hub.de/companies/Knorr%20-%20Bremse%20AG

Traton's Q4 2024 results showed a 4% yoy decline in revenues to EUR 12.2bn, driven by weak demand in Europe and challenges in North America. Adjusted EBIT grew modestly by 2% to EUR 1.1bn (margin: +50bps yoy to 9.2%). Both results surpassed consensus estimates. Unit volumes were stable at 88.8k, with solid sales from International Motors and Volkswagen Truck & Bus, while MAN struggled in weak European markets. For FY 2025, management issued a conservative guidance, expecting sales and volumes to grow by -5% to +5% yoy, with an EBIT margin of 7.5%-8.5%. Due to increasing macro and political uncertainties, mwb research’s analysts remain cautious on the near-term outlook but see recovery potential in the mid-term. Given the risks and a 31% rise in the share price since the start of the year, the analysts downgrade their rating from HOLD to SELL, while keeping their price target at EUR 29.00. The full update can be downloaded under https://www.research-hub.de/companies/Traton%20SE

After nine years of 13% annual growth, triple the industry’s rate, Infineon has finally claimed the No. 1 spot in the global microcontroller market (Source: Omdia), securing a 21.3% share in 2024, driven by a historic 3.5pp surge, outpacing its rivals despite the tough industry. Infineon’s success stems from relentless innovation, a robust product portfolio, and software-driven solutions that continue to strengthen its appeal across key end-markets, including automotive, IoT, and industrial automation. Yet, while this milestone reinforces Infineon’s long-term strength and trajectory, short-term headwinds remain, including weak end-market demand, inventory corrections, and geopolitical uncertainties that cannot be overlooked. Thus, mwb research’s analysts maintain a HOLD rating with EUR 35.00 PT, waiting for a clearer picture of a sustained recovery in underlying demand as uncertainty gradually eases. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

HelloFresh’s preliminary FY24 results confirm revenue stagnation due to declines in the meal-kit business, but improving profitability, with AEBITDA reaching EUR 399m. However, the 2025 outlook is disappointing, with revenue expected to decline 3-8% yoy, driven by weakening consumer confidence in North America and continued meal-kit headwinds. The Ready-to-Eat (RTE) segment is projected to grow, but not enough to offset meal-kit losses. Meanwhile, cost-cutting will drive AEBITDA up to EUR 450-500m. Given the soft revenue outlook and macroeconomic risks, the analysts lower their price target to EUR 11.00 (old EUR 12.50) but maintain a HOLD rating. The full update can be downloaded under https://www.research-hub.de/companies/research/HelloFresh%20SE