NuWays AG Confirms BUY Rating for R. Stahl AG

NuWays AG has issued a BUY rating for R. Stahl AG, maintaining a target price of €29.00. The rating follows a strong Q2 performance, with sales up 16.4% year-on-year to €89.3 million and an EBITDA increase of 25.7% to €10.9 million. These results surpassed internal estimates.

R. Stahl's Q2 growth was driven by a solid order backlog of €122 million and an easing in supply chains. Despite increased personnel costs due to wage inflation, the company managed to lower its cost of materials ratio, contributing to the impressive EBITDA figures.

The order intake for the first half of 2024 recovered to €181 million, bolstered by a slight recovery in the chemical industry and new orders from the nuclear sector. Management confirmed FY24 guidance with expected sales between €335-350 million and an adjusted EBITDA between €35-45 million.

R. Stahl's prospects appear promising due to its significant market share in the LNG value chain, rising demand for production automation, and the ongoing nuclear renaissance across Europe. The company is well positioned to improve margins, returns, and cash flow generation.