MS Industrie recently decided to focus on its core business by selling 51% of its subsidiary MS Ultraschall in mid-24. The move will allow the company to focus on its highly automated MS XTEC division, which produces mechanical parts and systems as a single-source, first-tier supplier primarily for the heavy-duty truck market. MS XTEC's products are known for their high quality, consistency and long-life cycles. The company has long-term contracts with major customers, including Daimler Trucks and Traton, that specify planned annual purchase volumes. Despite the current downturn in the European truck market, growth is expected as demand picks up. The company's low future CAPEX requirements, long-term contracts and low price-to-book ratio of 0.5x make the stock an attractive investment. mwb research’s analysts initiate their coverage of MS Industrie with a BUY rating and a PT of 2.40, offering an upside of 75.2%. The full update can be downloaded under https://research-hub.de/companies/ms-industrie-ag

HWK 1365 SE (HWK) has announced that two board members, Frank Günther and Wolf Waschkuhn (also managing director of HWK), are in custody and under investigation on charges unrelated to HWK. The company's operations, which are managed by Hüttenwerke Königsbronn GmbH, remain unaffected as its managing director is not under investigation. The investigations could lead to prolonged uncertainty, potentially necessitating interim management changes. The situation is further complicated by the fact that Frank Günther and Wolf Waschkuhn directly or indirectly control approximately two-thirds of the share capital of HWK. Until the impact of the investigations on HWK become clearer, mwb research’s analysts put their rating under review and suspend their price target. The full update can be downloaded under https://www.research-hub.de/companies/HWK%201365%20SE

Nemetschek (NEM) reported strong preliminary FY24 results, with revenues growing 17% yoy to EUR 996m, driven by organic growth of 14% and contributions from GoCanvas (+3pp). Exceptional performance in the Design and Build segments, fueled by the subscription transition and final sales of perpetual licenses, boosted Q4 revenues to EUR 291m (+33% yoy mwb est.). Preliminary EBITDA margins exceeded the upper end of guidance, showcasing robust operational execution. The shift to SaaS and recurring revenues continues to solidify Nemetschek’s position, with ARR growing over 40% yoy and recurring revenues contributing 86% to the total. Mwb research raises the PT to EUR 110.00 (from EUR 96.00) but maintains our HOLD rating. The full update can be downloaded under https://www.research-hub.de/companies/research/Nemetschek%20SE

TUI's long-term corporate credit ratings from Moody's and S&P are expected to be reviewed in February, with a good chance of an upgrade given the positive outlooks both agencies have given after raising the ratings last year (S&P to B+ and Moody's to B1). Indicators supporting an upgrade include TUI's strong FY24 performance with EBIT growth of 28%, significant debt reduction (EUR 2.1bn to EUR 1.6bn), improved net leverage (0.8x in FY24 vs. 1.2x in FY23) and progress on mid-term targets. These achievements, together with positive FY25 guidance and robust bookings, suggest that TUI is overcoming pandemic challenges and moving towards its target rating range (BB/Ba). An upgrade would boost equity confidence and confirm TUI's recovery. mwb research’s analysts reiterate their BUY recommendation with a price target of EUR 16.00. The full update can be downloaded under https://www.research-hub.de/companies/TUI%20AG

Infineon’s Q1 2025 results, due on February 4th, are expected to highlight a subdued start, with consensus sales at EUR 3.27bn, reflecting steep declines of -16.8% qoq and -11.8% yoy, alongside a segment margin contraction to 15% (-6.5pp qoq, -3.5pp yoy). These results, while in line with guidance, underscore industry-wide pressures such as shrinking light vehicle production, stagnant xEV adoption outside China, weak industrial and consumer demand, and persistent inventory overhangs. The FY25 guidance implies gradual improvement throughout the year, though not enough to reverse a yoy decline, marking the second consecutive year of contraction since the 2023 peak. The steep drop in Infineon’s order backlog—now EUR 19bn, down from EUR 43bn nine quarters ago—warrants close monitoring. Q1 targets appear achievable due to their already depressed levels, but a clear upward trajectory from Q2 is vital to sustain investor confidence and prevent a stock sell-off. As for now, mwb research’s analysts maintain their BUY rating with a PT of EUR 37.00 as long-term growth drivers remain intact. The full update can be downloaded under https://www.research-hub.de/companies/Infineon%20Technologies%20AG

LM Pay S.A. continued its robust growth trajectory, driven by an expanding customer base and strengthened partnerships with healthcare providers. The company's ability to deliver recurring revenue streams from medical and aesthetic services has further solidified its market position. LM Pay is strategically positioned for continued growth with plans to expand its clinic network and introduce new financial products. The company's ability to secure a leading position in the embedded healthcare financing market in Poland, coupled with its scalable business model and strategic growth initiatives, underpins the confidence in its long-term potential. mwb research will host a virtual investor roundtable with CEO Jakub Czarzasty on January 22 at 14:00 CET (register here). Mwb research reiterates the BUY rating with unchanged PT of EUR 63.00, which represents an upside of around 67%. The full update can be downloaded under https://www.research-hub.de/companies/LM%20Pay%20S.A.

Is the Defense Supercycle Ending by 2030? This question frequently arises in meetings with investors, reflecting concerns about long-term growth. Current consensus estimates a P/E of 13 for 2027, despite Rheinmetall's robust growth potential extending well beyond that year. The company is uniquely positioned to benefit from a structural shift in defense spending, driven by NATO standards that will take decades to meet. For example, the European need for 155mm artillery shells far outstrips current production capabilities, with a conservative estimate of EUR 108bn required to meet just 30 days of ammunition stock. At Rheinmetall’s planned production capacity of 1.1m shells per year by 2027, fulfilling this demand would take more than 30 years, underscoring the company’s critical role in addressing this persistent gap. Beyond artillery, Rheinmetall's growth is supported by undervalued opportunities in air defense systems and battlefield digitalization. With an order backlog exceeding six times its 2024 revenues, market leadership, and increasing production capacity, Rheinmetall is well-positioned for sustained growth. mwb research’s analysts reiterate their BUY rating and raise their price target to EUR 800.00 (previously EUR 750.00), reflecting stronger post-2030 revenue expectations. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

Suss MicroTec announced preliminary Q4 headline figures and held a conference call. Preliminary Q4 results were excellent, with record revenues of EUR 150m (+47% yoy), beating consensus by 37% and reaching all-time highs, driven by strong growth in Advanced Backend (+55% yoy) and Photomask Solutions (+32% yoy). Profitability also improved, with FY24 gross margin reaching 40% and EBIT margin better than expected at 17.5%. Q4 order intake reached a record EUR 147m (+6% yoy) with broad-based demand across all divisions. Despite a slight decline in the order book (-5% yoy), growth for FY25 looks plausible, even taking into account the now even more ambitious comps. mwb research’s analysts reiterate their BUY rating with a price target of EUR 77.00. The full update can be downloaded under https://www.research-hub.de/companies/SUESS%20MicroTec%20SE

Friedrich Vorwerk Group (FVG) announced strong preliminary results for Q4 24, which exceeded expectations. Q4 sales are expected to exceed EUR 155m, an increase of 58% yoy. Q4 EBITDA is expected to be around EUR 30m, more than double last year's EUR 11.6m, resulting in an EBITDA margin of 19%, approaching record levels from 2021. This performance has led to an upward revision of FVG's FY24 guidance, with revenues now expected to exceed EUR 495m, 10% above consensus. FY24 EBITDA is expected to be EUR 80m, 25% above consensus, with a margin of 16%. Supported by a solid capital structure, FVG also increased its workforce and reported strong liquidity. With a strong order book and solid growth potential, mwb research’s analysts reiterate their BUY rating with an increased PT of EUR 38.00 (from EUR 36.00) based on the better-than-expected preliminary results and updated estimates. The full update can be downloaded under https://www.researchhub.de/companies/Friedrich%20Vorwerk%20Group%20SE

Bayer’s announcement this week of breakthrough pipeline progress and upcoming launches has ignited investor confidence, driving a 6% surge in its stock. The company’s innovative pipeline, with a strategic focus on oncology, cardiology, and women’s health, features therapies like darolutamide, finerenone, and acoramidis, alongside blockbuster potential for elinzanetant and gadoquatrane. We expect these therapies to generate over EUR 5.5bn in peak annual sales by 2027, contingent on successful execution and commercialization—equating to more than 30% of 2023’s pharma revenue. This growth outlook aligns with management’s assertion of a return to growth for the pharma business by 2027, while EUR 800m in cost savings by 2026 will further sweeten the pot. Against this backdrop of positive developments, mwb research’s analysts maintain their BUY recommendation and price target of EUR 31.00, reflecting Bayer’s clear path to long-term success despite ongoing legal and industry challenges. The full update can be downloaded under https://www.research-hub.de/companies/Bayer%20AG