SRH AlsterResearch AG Update: WashTec AG - Impressive order book; BUY

WashTec AG (Update) Industrial Goods & Services MCap EUR 700m BUY, PT EUR 59.00 (+12% potential) Research_update WashTec’s problems in its key accounts persisted in Q1 as major customers delayed investments owing to the pandemic, but direct sales business showed encouraging growth. Despite the world reeling under the pandemic-induced challenges, order intake registered healthy growth trends. Overall, WashTec reported a mixed Q1 2021 as key accounts business kept group sales under pressure, while its cost improvement programme resulted in a meaningful expansion of EBIT margin. The company boast a high-quality business model, backed by its superior market position and sticky subscription services with average ROCE in the range of 25%. We thus maintain our BUY rating and a DCF-based price target of EUR 59.00. For 5 current investment ideas, check our Weekly Screener. This week we are looking for companies that have the highest Return on Capital Employed (ROCE) Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de