Schloss Wachenheim AG: Third Quarter Results and Updated Forecast

First Berlin Equity Research has released an update on Schloss Wachenheim AG, maintaining its "Buy" recommendation but lowering the price target from €19 to €18. Despite seasonal weaknesses in the post-Christmas quarter, sales in Germany and East Central Europe increased by 0.5% and 3.4%, while French sales dropped 2.8%.

Uncertainties, such as the Ukraine conflict and fluctuating US tariff policies, coupled with the Iran war's impact on mobility costs, have constrained consumer spending. Management upholds its 2025/26 forecast for sales growth of 3%-6% and EBIT of €30m-€33m but anticipates results at the low end of these figures.

First Berlin expects geopolitical tensions to ease, potentially boosting future consumer confidence and business activity. However, they have slightly adjusted near-term earnings expectations downward, reflecting current challenges and higher long-term interest rates.