NuWays AG Research Recommends Nynomic AG as BUY

NuWays AG has released an updated research report on Nynomic AG, sharing a recommendation to buy the stock. This follows an analysis conducted by Christian Sandherr, citing an unchanged target price of EUR 50.00.

Despite a challenging macro environment and a weak Q2 sales performance, Nynomic AG has shown improvement in profitability. The company reported a 7.4% quarter-on-quarter increase in sales to €24.7 million. However, year-on-year figures displayed a 21% decline due to a high comparison base. A significant 47% drop in order momentum during the previous year's H2 was also noted.

Encouragingly, recent order intake has improved, with a 25% increase in Q1 and a 15% rise in Q2 year-on-year. The order backlog at the end of H1 stood at approximately €60 million. Additionally, the EBIT margin in Q2 improved by 60 basis points year-on-year to 10.5%.

Looking forward, Nynomic is expected to experience growth in H2 2024, driven by a demand increase in Clean Tech. Growth from FY25 onwards is projected to return to double-digit rates, supported by new product launches and revitalized demand in various sectors.