NuWays AG Recommends Buying MAX Automation SE Amid Muted Business Climate

On July 22, 2024, NuWays AG released a research report on MAX Automation SE, recommending a "Buy" rating with a target price of EUR 8.20. The report anticipates moderate business conditions for the company.

MAX Automation SE is expected to publish its Q2 results on August 2, 2024. The report foresees a slight year-on-year sales decline of 1.5% to EUR 92 million, with an 8.2% EBITDA margin pressured by wage inflation and product mix. In the first quarter, order intake increased by 26% to EUR 90 million, showing some recovery after three quarters of decline.

Bdtronic, a key portfolio company, is expected to see an 11.5% increase in revenue to EUR 26 million, boosted by a strong service business. However, EBITDA may drop by 32% year-on-year to EUR 3.4 million due to higher personnel costs and an unfavorable product mix.

Vecoplan's revenues are projected to fall by 10% year-on-year to EUR 37 million, attributed to reluctance in investment within the recycling and waste division. This sector experienced a 15.6% decline in order intake in FY23.

Despite short-term challenges, NuWays AG remains optimistic about the mid-term prospects for MAX Automation SE, citing strong competitive positions of its portfolio companies. Bdtronic, for example, is well-positioned to benefit from the ongoing electrification of the automotive industry.