SRH AlsterResearch AG Update: WashTec - Increase in guidance with further order momentum; BUY

WashTec AG (update) Industrial Goods & Services MCap EUR 657m BUY, PT EUR 59.00 (20% potential) Research_update   Due to continued momentum in its order intake, WashTec today announced that it upwards revised its FY 2021 guidance. It now expects sales to increase by more than 5% (3% earlier) and EBIT also >5% yoy (unchanged). As we already anticipated higher growth, both at its top- and bottom-line, we keep our model assumptions unchanged. With average ROCE in the range of 25%, WashTec banks on a high-quality business model, backed by its superior market position and sticky subscription services. We therefore believe that it is not a question if WashTec will return to its old highs in terms of sales and earnings power but merely a question of when. We maintain our BUY recommendation and PT at EUR 59.00. For 5 current investment ideas, check our Weekly Screener. This week we are looking for companies that are simply the cheapest (deep value). Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de