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

Dräger achieved a currency-adjusted revenue increase of 0.6% in FY24, reaching EUR 3.37bn, slightly below management’s guidance and mwb research’s estimates of EUR 3.41bn. The 4.7% growth in the safety division offset a 3.4% decline in the medical division. With a higher gross margin of 45.0% (previous year: 43.3%) and one-time gains of around EUR 22m, EBIT increased by 19% to EUR 197m, resulting in an EBIT margin of 5.8%, exceeding the upper end of guidance and mwb research’s expectation. For FY25, Dräger expects revenue growth of 1.0-5.0% and an EBIT margin of 3.5-6.5%, well on track to achieve its long-term margin expansion strategy. Taking into account the better-than-expected margins and the FY25 outlook, the analysts adjust their estimates upward and maintain their BUY rating with a new PT of EUR 69.00 (old EUR 65.00). The full update can be downloaded under https://www.research-hub.de/companies/Draegerwerk%20AG%20&%20Co.%20KGaA

Verbio has reduced its FY24/25 EBITDA guidance from EUR 120-160m to a mid doubledigit million EUR range due to unexpected technical issues at its Nevada facility and continued pressure from declining greenhouse gas (GHG) quota prices. However, the company maintains its expectation that net financial debt will be capped at EUR 190m by year-end. The revised outlook reflects the challenges in the US expansion and the ongoing difficulties in the biofuels market, including dumped biodiesel from China and lower GHG quota prices. While the market remains challenging, Verbio sees early signs of a recovery in GHG prices and expects a gradual recovery in 2025. Despite the nearterm setbacks, mwb research’s analysts remain optimistic about Verbio's long-term growth prospects and reiterate their BUY rating, lowering their PT to EUR 16.00 based on lowered estimates. The full update can be downloaded under https://www.research-hub.de/companies/Verbio%20SE

Zalando delivered a strong Q4 performance, with a preliminary adjusted EBIT of EUR 510m, beating its FY24 guidance of EUR 460m at midpoint. The results were driven by robust customer growth, strategic marketing, and improved sell-through rates, reinforcing the momentum seen in Q3. Full-year revenues reached EUR 10.5bn, near the upper end of guidance, while disciplined Capex spending further highlighted Zalando’s operational efficiency. With progress in the acquisition of About You, Zalando is well positioned to build on this success in the year ahead. With a revised PT of EUR 38.00 (old: EUR 37.00), mwb research’s analysts upgrade to BUY (before: HOLD), following the recent dip in share price. The full update can be downloaded under https://www.research-hub.de/companies/Zalando%20SE

mwb research hosted an online roundtable with ABO Kraft & Wärme’s Chairman and anchor investor Dr. Jochen Ahn and Commercial Manager Jörg Frensch, discussing the company’s business model, regulatory environment, and growth strategy. ABO Kraft & Wärme operates biogas plants in Germany, generating biogas, electricity, heat, and biomethane from organic waste. The company focuses on acquiring biogas plants nearing the end of their EEG subsidies and converting them to produce biomethane from manure, thereby benefiting from greenhouse gas quotas. Despite recent price volatility related to oversupply and fraud, the medium-term outlook is promising. ABO Kraft & Wärme remains one of the few good opportunities to diversify a sustainable portfolio into biogas and biomethane. mwb research’s analysts confirm their Spec. BUY with a target price of EUR 1.60. A recording of the event is available here: https://research-hub.de/events. The full update can be downloaded under https://www.research-hub.de/companies/ABO%20Kraft%20&%20W%C3%A4rme%20AG

Circus is revolutionizing the food service industry with its cutting-edge autonomous robotic kitchen, the Circus Autonomy One (CA-1), a fully automated, AI-driven system capable of preparing up to 120 dishes per hour, offering unmatched efficiency and versatility. Backed by EUR 40m in R&D and over 1 million meals already sold, Circus leverages its early mover advantage and razor-blade model to drive recurring high-margin SaaS revenue. With pre-orders for 8,400 units worth EUR 1.8 billion, partnerships with major players like Strabag and IHG, and a market potential spanning 80 million global locations, demand looks set to be sky-high. As CEO Nikolas Bullwinkel—former co-founder and unicorn-builder of Flink—leads the charge, Circus is poised for explosive growth, constrained only by supply capacity. Circus offers investors a rare opportunity to back a true game-changer in an industry that is larger than the global automotive market and ripe for disruption. mwb research’s analysts initiate the coverage of Circus SE with a BUY recommendation and a PT of EUR 75.00 offering an upside potential of 215%. The full update can be downloaded under https://research-hub.de/companies/circus-se

Suedzucker (“SZU”) continued to experience a challenging business environment in Q3 24/25, troubled by falling prices for sugar, ethanol food and animal feed and starch products. As already cautioned by management, Q3 was a dull quarter. Revenues declined 12% yoy to EUR 2.4bn, EBITDA fell 79% yoy to EUR 82m and the company reported a negative operating result of EUR 33m (vs Q3 FY 23/34: EUR 268m profits). All segments, except Fruit, witnessed declines in their top-line and profitability during the quarter. Management reiterated its guidance for FY 24/25, which it had cut during the Q2 prelims. It continues to guide for consolidated group revenues of EUR 9.5bn9.9bn, EBITDA of EUR 550m-650m and group operating profit of EUR 175m-275m. With no recovery in prices in sight in the near future, mwb research’s analysts maintain their SELL rating with unchanged PT of EUR 9.00, representing a c.12% downside risk. The full update can be downloaded under https://www.research-hub.de/companies/Suedzucker%20AG

Following a turbulent 2024 that saw Siltronic’s stock tumble nearly 50%, investors are keenly awaiting the Q4 prelims on February 4. The company remains under pressure from elevated inventories and weak demand across key end markets, with the AI and data center boom offering only partial relief. For FY24, mwb research projects revenue of EUR 1.41bn (-6.7% yoy) and a flat Q4 top line of EUR 360m, weighed down by softer volumes and FX headwinds. mwb research’s analysts expect the EBITDA margin to land at 25.4%, slightly above guidance midpoint, while EPS is forecasted at EUR 2.33 (-62% yoy), further impacted by higher interest costs from heavy capex. While headwinds are likely to persist into 2025, Siltronic’s depressed valuation presents a compelling risk-reward case, with potential for a sharp rebound given the cyclical nature of the wafer industry. mwb research’s analysts reiterate their BUY rating with an unchanged price target of EUR 80.00. The full update can be downloaded under https://research-hub.de/companies/Siltronic%20AG

Photon Energy reported significant progress on its 250 MW concentrated solar power plant with 1.8 GWh (12 hours) of thermal hydro storage in KwaZulu-Natal, South Africa. The project has secured favorable grid connection terms, and advanced the environmental impact assessments and zoning processes, with ready-to-build status expected by Q2 2026. This project is strategically important as it establishes Photon Energy’s presence in emerging markets and could leverage Eskom’s regional influence. It will be the largest deployment of RayGen technology, in which Photon Energy holds a 5.4% stake. Success could serve as a blueprint for future installations and boost the value of Photon’s investment. mwb research’s analysts confirm their Spec. BUY rating with a price target of EUR 1.40. The full update can be downloaded under https://www.research-hub.de/companies/Photon%20Energy%20NV