Gerresheimer (GXI) has confirmed that it is in preliminary discussions with private equity investors. According to GXI, these investors have expressed an interest in exploring a possible public takeover offer on a non-binding basis. In mwb research’s view, this is a clear sign that the mostly US-based investors consider German SMEs to be undervalued. In mwb research’s believes, GXI is an attractive target that trades well below its peer group valuation (EV/EBIT '25 of 14x vs. 24x peer median). For a successful takeover, PE investors would have to offer a premium that the analysts believe should be at least 30% above the 3-months volume-weighted average price of EUR 74.38. With estimates unchanged, the analysts reiterate their BUY rating with a price target of EUR 96.00. The full update can be downloaded under https://www.research-hub.de/companies/research/Gerresheimer%20AG

Following the chip shortage crisis, the automotive semiconductor cycle peaked in late 2023 and entered a correction phase in 2024, marked by inventory gluts and muted chip orders. This is expected to persist through H1 2025, with gradual recovery anticipated in H2 2025 and a new growth cycle to begin in 2026 driven by structural trends. Modest price erosion of 2-3% is expected as supply chains normalize. Mwb research’s analysts have already factored in the impact on Elmos and yet remain confidently bullish at current valuations heading into 2025. Elmos outperformed its peers during the 2024 downturn, and the analysts expect this momentum to continue as the market recovers. mwb research’s analysts reiterate their BUY rating with a PT of EUR 98.00. The full update can be downloaded under https://research-hub.de/companies/Elmos%20Semiconductor%20SE

Airbus is grappling with multiple headwinds that undermine its growth prospects and valuation. The significant delay of its hydrogen-powered ZEROe project, now potentially pushed from 2035 to 2045, not only stalls its efforts in sustainable aviation but also erodes a key pillar of its long-term growth strategy under the net-zero agenda. This delay, combined with the discontinuation of its Beluga Transport operations, highlights broader operational and innovation challenges. Financially, Airbus is struggling with a ROCE of just 8%, barely covering capital costs, while facing intensified competition from COMAC, whose rapid production expansion threatens Airbus’s margins and market share. A sharp 72% drop in gross orders further signals the end of the post-pandemic recovery cycle. With 51% of the DCF valuation tied to terminal value—highly sensitive to these negative developments—the stock appears significantly overvalued. mwb research’s analysts therefore maintain their SELL rating and a price target of EUR 127.00, urging investors to take profits amid growing risks. The full update can be downloaded under https://www.research-hub.de/companies/Airbus%20SE

Siemens Healthineers AG’s (SHL) Q1 FY25 results were better than market expectations. Revenues grew 5.7% yoy on a comparable (comp.) basis, ahead of consensus of +3.6% yoy, with growth across all segments. Order intake was robust, with the equipment book-to-bill ratio at an impressive 1.21x in Q1 (FY 24: 1.11x). Adj. EBIT grew 11% yoy to EUR 822m (a 2% beat), and the margin improved 70bps yoy to 15.0%, led by the Diagnostics and Varian businesses. With a good start to FY25, management reiterated its full-year guidance. Order book remains healthy, and except China, most regions are witnessing positive demand trends, and savings from the Diagnostic business’ transformation are coming through. This underscores our belief that SHL will continue to benefit from structural mega-trends in the MedTech industry, given its strong market position. mwb research’s analysts slightly increase their estimates and PT to EUR 64.00 (old: EUR 60.00). The analysts maintain their BUY rating on the stock. The full update can be downloaded under https://www.research-hub.de/companies/research/Siemens%20Healthineers%20AG

Cancom's Head of Investor Relations, Lars Dannenberg, participated in mwb research’s well-attended ‘Focus on IT’ conference, providing insights into the company’s latest business developments. A recording of the presentation can be found here: research-hub.de/videos. While short-term headwinds from macroeconomic pressures persist, Cancom’s strategic investments in digital transformation and service diversification position Cancom well for sustainable long-term growth. The company's robust market position (#5 in DACH region), strong M&A track record, and focus on high-growth IT segments such as cloud computing, cybersecurity, and AI support our optimistic outlook. The preliminary FY24 numbers due on February 11 will provide more insight. mwb research’s analysts expect a cautious outlook for FY25, but in mwb research’s view, it is the long-term perspective that counts. BUY with an unchanged target price of EUR 28.50. The full update can be downloaded under https://www.research-hub.de/companies/Cancom%20SE

Hensoldt's stock fell 6.1% after news of an upcoming Trump-Putin meeting, but the company’s core value lies in supplying NATO countries, not Ukraine. Ukraine contributes just 5.4% to revenues (mwb est.), and a potential end to the conflict is already factored into mwb research’s base case. Hensoldt rebounded 30% from its September 2024 lows despite increasing ceasefire prospects, reflecting strong demand from NATO and German defense budgets. While mid-term growth remains solid, long-term challenges beyond 2030 could arise due to reliance on existing platforms like the TRML-4D radar. mwb research’s analysts maintain their BUY rating with price target of EUR 43.00. The full update can be downloaded under https://www.research-hub.de/companies/Hensoldt%20AG.

Rheinmetall's stock recently dropped by 5.6% after news emerged of a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin. However, the company's long-term value lies in supplying NATO countries, many of which have yet to meet the 2% defense spending target. Furthermore, in a newly released video, Elon Musk highlighted the critical role of drones and AI in modern warfare. Rheinmetall is well-positioned in this space, advancing drone technologies like the HERO and LUNA systems. The company also leads in AI and battlefield digitalization, having secured several key contracts in recent months. These developments support mwb research’s BUY rating and a price target of EUR 800.00. The full update can be downloaded under https://www.research-hub.de/companies/Rheinmetall%20AG

At mwb research’s "Focus on IT" conference, Markus Klahn, CEO of Intershop Communications AG, outlined the company’s transformation from a traditional license model to a cloud-based Platform-as-a-Service (PaaS) provider. Intershop, a leader in B2B e-commerce, leverages its partnership with Microsoft Azure and AI-driven personalization via Sparque.ai to enhance scalability and customer experience, earning recognition from IDC and Forrester. With a 26% CAGR in cloud business (2019-2023), Intershop is accelerating growth by migrating legacy customers to its Commerce Suite on Azure while expanding its client base. This shift boosts recurring revenues and margins, as cloud customers generate three times more revenue than on-premise users. Preliminary 2024 results, set for February 19 (register here for the earnings call: https://research-hub.de/events/registration/2025-02-19-13-30/ISHA-GR ), will shed light on this progress. mwb research’s analysts reiterate their BUY rating with a EUR 3.00 price target. The full update can be downloaded under https://www.research-hub.de/companies/Intershop%20Communications%20AG

Just days after Nagarro ruled out take-private plans and reaffirmed its stock market commitment, the company announced a EUR 70m share buyback starting February 6, 2025. This move follows two years of guidance downgrades and appears to be part of a broader effort to regain investor confidence. Coupled with a clearer FY25 outlook and plans for a dividend policy, Nagarro signals a strategic shift toward maximizing shareholder value while reinforcing its growth ambitions. mwb research’s analysts reiterate their PT of EUR 102.00 and maintain their BUY rating. The full update can be downloaded under https://www.research-hub.de/companies/Nagarro%20SE

Metro AG reported a 7.1% yoy sales increase (local currencies) in Q1 FY 24/25, driven by strong growth in Eastern Europe and its delivery segment. However, adjusted EBITDA rose only 1.2% due to inflation and FX headwinds. Despite confirming a cautious FY outlook, Metro expects long-term cost savings from ongoing transformation efforts. Concurrently, Metro and major shareholder EP Global Commerce (EPGC) announced a delisting offer at EUR 5.33 per share. mwb research’s analysts raise their PT to EUR 5.10 (old: EUR 5.00), and downgrade from BUY to HOLD following the surge in share price. In mwb research’s view, the offer undervalues the company, also compared to EPGC’s higher 2019 bid. The non-tender agreement of key shareholders Meridian/Beisheim and the management’s concerns in regard to the valuation underpin this view. Overall, the analysts see the possibility of a better offer emerging. The full update can be downloaded under https://www.research-hub.de/companies/research/Metro%20AG