Original-Research: Deutz AG (von Quirin Privatbank Kapitalmarktgeschäft): Buy
Summary by AI BETAClose X
Quirin Privatbank maintains a "Buy" recommendation for Deutz AG with a target price of EUR 10.00, citing a mixed Q3/25 performance where order intake fell 15.3% year-on-year to EUR 470.4m, but adjusted EBIT nearly quadrupled to EUR 28.4m, driven by cost optimizations. Despite weak agricultural and construction markets, growth is expected to continue through acquisitions in the service and defense sectors, with full-year 2025 sales projected at EUR 2,100m and adjusted EBIT at EUR 111m. The bank believes Deutz AG is transforming into higher profitability segments and trades at a discount to international peers, suggesting potential for the stock to close this valuation gap.
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Original-Research: Deutz AG - from Quirin Privatbank Kapitalmarktgeschäft
Classification of Quirin Privatbank Kapitalmarktgeschäft to Deutz AG
Mixed Q3/25 – Growth path intact DEZ Q3/25 came in with a mixed picture. Order intake in Q3/25 declined by 15.3% yoy. to EUR 470.4m. Q3/23 sales growth of 14.6% yoy. to EUR 493.3m is largely related to the first-time consolidation of acquired new operations. DEZ achieved an Q3/25 (adj.) EBIT of EUR 28.4m (EBIT margin 5.8%) which nearly quadrupled vs. the weak previous year quarter. The growing margin is largely supported by the impacts of the recent cost and efficiency optimisation programs. While major distribution markets like agriculture and construction machinery remain weak, we expect DEZ continue to grow due to the most recent value enhancing acquisitions. This includes the new acquired service operations and the investments into the new defence segment. FY 25 sales should reach about EUR 2,100m (+15.8% yoy.) Adj. EBIT might reach a level of EUR 111m, with a growing EBIT margin of 5.3%. Upcoming FY26 should lead to an acceleration of growth on all relevant KPI, mainly driven by the newly acquired operations in the high margin service segment. The most recent acquisitions of Sobek in the defence segment (electrical drive systems and components for UAV’s) and the participation of DEZ in the next financing round of ARX (unmanned ground vehicles, UGVs) are of strategic importance and will extend the fast-growing defence unit of DEZ. We see DEZ continuously in the transformation phase into products and services which offer a higher profitability and industrial growth prospects. Our updated DCF Valuation which include the most recent equity raise (10% rise in share capital) still indicate a significant upside to the TP of EUR 10.00. This is largely backed by an international peer comparison. DEZ trades currently with large discounts to its international peers. Especially the pick up in sales growth and margins might support the stock to close the value gap. Rec. remains Buy. You can download the research here: DEUTZ_AG_20251105 For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/
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2233716 20.11.2025 CET/CEST
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