NuWays AG Reaffirms Buy Rating for INDUS Holding AG

NuWays AG has updated its research on INDUS Holding AG, recommending a "Buy" with a target price of EUR 36.00. This recommendation is supported by a solid merger and acquisition (M&A) pipeline. INDUS has a budget of €70 million for M&A in FY2024, backed by a strong cash position of €266 million at the end of FY2023.

The company faces challenges and opportunities across its segments. The Engineering and Materials segments experienced declines in Q1 but are expected to recover in the latter half of FY2024. Conversely, the Infrastructure segment is anticipated to see an increase in EBIT, aided by improved market conditions and operational efficiencies at portfolio company Aurora.

Free cash flow (FCF) remains robust, with projections indicating a return to the low triple-digit area. The current valuation suggests an adjusted FCF yield of around 10%. INDUS remains a solid investment with a potential to meet its financial goals for FY2024.