NuWays AG Maintains BUY Rating for MAX Automation SE Despite Challenges

NuWays AG has issued an updated BUY recommendation for MAX Automation SE, maintaining a target price of €7.00 over a 12-month horizon. Despite a challenging FY25 outlook due to subdued demand, the company's mid-term prospects remain stable.

The fiscal year 2024 saw a 5.8% sales decline, attributed to a weak order backlog and investment hesitance across most portfolio companies, barring ELWEMA. The book-to-bill ratio of 0.86x led to a 19.8% decrease in order backlog, exerting pressure on FY25 top-line growth.

bdtronic faces significant hurdles with decreased sales projections to €77m in FY25 due to low order intake and intensified competition. Conversely, ELWEMA displays resilience with a 26% increase in order intake, securing growth for FY25.

The sale of MA micro for €70m bolstered the bottom line through debt reduction, potentially increasing earnings from continuing operations in FY25. The DCF-based price target remains unchanged.