AlsterResearch Update: Westwing Group - Demotion from SDAX
On Friday, Deutsche Börse announced changes to the DAX index family. Effective December 20, Westwing will be excluded from the SDAX index based on the fast exit rule. This is due to the strong decrease in the market cap.
The full update is avaible on:
What’s it all about?
On Friday, Deutsche Börse announced changes to the DAX index family. Effective December 20, Westwing will be excluded from the SDAX index based on the fast exit rule. This is due to the strong decrease in the market cap: since beginning of September, Westwing has shed almost half of its value. One reason for this steep drop is the fading growth dynamic, which we believe is mostly related to a base effect. Combined with margin headwinds due to global supply chain disruptions (sea freight and fulfilment costs, higher inventory), challenges look set to carry over into H1 2022. However, the temporary nature of these effects suggest that the derating is overdone. We maintain our BUY rating with a PT of EUR 43.00 based on DCF.