CENIT AG Reports Mixed Financial Results Amid Inorganic Growth

CENIT AG's revenue increased by 13.6% to €151.43 million in the first nine months of 2024, driven by both organic growth and acquisitions. Newly acquired CCE GmbH and Analysis Prime LLC contributed €7.52 million to the revenue. Without these acquisitions, organic growth was 4.3%, nearing the company’s 5% target.

However, earnings were negatively impacted by acquisition-related costs and a one-off deconsolidation effect. EBIT fell to €3.97 million, with the margin dropping to 2.6%. Despite this, CENIT generated a robust operating cash flow of €9.91 million, covering most acquisition expenses.

The company revised its revenue guidance due to weaker demand in the automotive and aerospace sectors and delays at Analysis Prime. This led to a new price target of €22.00, with a continued 'BUY' recommendation.