R. Stahl AG Maintains Optimism Despite Mixed FY25 Outlook

NuWays AG has reiterated its "Buy" recommendation for R. Stahl AG, setting a target price of EUR 25.00. This follows a successful FY24, but challenges loom as FY25 begins. A dip in the European chemical industry and delayed investment decisions before the U.S. presidential election have tempered demand. The company's Q3 order intake fell, but a recovery is anticipated in the final quarter of FY24 and early FY25, buoyed by expectations from the new U.S. administration.

Despite these challenges, R. Stahl's sales are projected to reach €355 million in FY25, with the EXcelerate strategy expected to improve the EBITDA margin to 10.8%. The company's position in the explosion protection market remains solid, supported by strong brand recognition. Wage inflation may pressure profitability, but the headcount is likely to decrease slightly, offsetting some costs.