Original-Research: R.
23.10.2024 - 09:02:32Original-Research: R. STAHL AG (von NuWays AG): Buy. STAHL AG - from NuWays AG 23.10.2024 / 09:01 CET/CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
Original-Research: R. STAHL AG - from NuWays AG
23.10.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to R. STAHL AG
Company Name: R. STAHL AG
ISIN: DE000A1PHBB5
Reason for the research: Update
Recommendation: Buy
from: 23.10.2024
Target price: EUR 29.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr
Solid Q3 preview // FY guidance in reach
Topic: R. Stahl will release its Q3 report on November 6th. We expect
moderate sales growth and a slight decrease in EBIT from a high comparable
base.
Sales are expected to come in at EUR 90m, 4.7% above last year (eNuW),
supported by a lower but still solid order backlog of EUR 121m end of H1'24.
EBIT is seen to come in at EUR 7.5m (-12% yoy), leading to a sound 8.3% EBIT
margin (-1.5ppts yoy).
While extraordinary costs from the EXcelerate strategy program should be
lower in Q3 and Q4, as already 80% of the costs have occurred, an increase
in personnel costs could put pressure on profitability. We expect an
increase from EUR 33.6m in Q3'23 up to EUR 36.0m (40% of sales vs. 37.6% in
Q3'23), of which c. 70% should be attributable to wage inflation and 30% to
a higher headcount (1,754 end of H1'24 vs. 1,715 end of H1'23).
Solid order intake expected: After the subdued order intake in H2'23, driven
by active destocking activities from customers due to an increasing
stabilization of global supply chains and a muted European chemical
industry, order intake in H1'24 recovered from a low level (EUR 181m in H1'24
vs. EUR 157m in H2'23). As demand in the chemical industry is slightly picking
up and thanks to structural trends such as LNG and nuclear, we expect order
intake to remain on a solid level (eNuW: EUR 88m).
FY sales and adj. EBITDA guidance in reach: Management forecasts sales in
the range of EUR 335-350m (eNuW: EUR 349m) and an adj. EBITDA of EUR 35-45m (eNuW:
EUR 40m). The forecast looks reasonable to us and might be even a bit
conservative on the top-line carried by an unbroken demand for electrical
explosion protection solutions in the LNG and gas industry and a solid order
backlog.
R. Stahl's mid-term prospects remain bright as the company strongly benefits
from (1) its superior market share along the LNG value chain, (2) a rising
need for production automation across offshore oil and gas rigs, and
production plants of several industries and (3) the ongoing nuclear
renaissance across Europe.
We reiterate our BUY rating with an unchanged PT of EUR 29.00, based on DCF.
You can download the research here: http://www.more-ir.de/d/31091.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2013917 23.10.2024 CET/CEST
