NuWays AG Reaffirms BUY Recommendation on DO & CO AG Amid Middle East Conflict

NuWays AG has updated its recommendation on DO & CO AG, maintaining a "BUY" stance despite recent market reactions to the Middle East conflict. A sell-off of 12% in DO & CO’s shares following tensions around Iran is viewed as an overreaction, given the company's limited direct operational exposure in the conflict regions.

DO & CO AG does not operate kitchens in Iran or neighboring affected areas. Short-term disruptions from flight cancellations are being managed under existing contracts, with financial impacts deemed temporary and manageable. The company estimates a weekly revenue loss in the mid-single-digit million euros, but this is not seen as disrupting its financial outlook significantly.

Given DO & CO's cost flexibility and seasonal factors like Ramadan lowering travel demand, the financial strain is expected to be limited. Despite uncertainties, potential traffic rerouting through Turkey, where DO & CO is strongly present, could partly offset losses. Consequently, NuWays AG reiterates its target price of EUR 266, with no changes to forecasts.