Vectron Systems AG Significant Rebound in 2023 with Optimistic Outlook

Vectron Systems AG has released its preliminary figures for fiscal year 2023, showing remarkable growth. With a turnover of 37.4 million euros, the company exceeded the results of the previous year by 48% and was in line with forecasts.

Growth was particularly visible in the POS systems and digital services division, where recurring revenue increased by 53%. This dynamic speaks to Vectron's focus on expanding its digital business, especially as hardware production has been outsourced.

The acquisition of acardo group AG also played a key role in this growth. In terms of profitability, Vectron achieved an EBITDA of 3.0 million euros, marking a turning point after a negative EBITDA the previous year. The outlook remains positive for 2024, with Vectron expecting further improvement in results driven by the expansion of the digital business and the recently acquired acardo.

Accordingly, the buy recommendation is maintained with a price target at 10.00 euros, adjusted slightly due to changes in the risk-free interest rate, offset by an upward adjustment in the perpetual growth rate.