Guidance 2022: Resuming top- and bottom-line growth; BUY reiterated

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What's it all about ?

This morning, S&T revealed prelim. 2021 indications as well as a first-time guidance for 2022. Both were broadly in line with our and market expectations. The guidance for 2022 (sales growth +12% yoy / EBITDA growth +16% yoy) is backed by a record order backlog as well as newly won orders worth EUR 170m in January alone. We view this as a comforting signal that especially blue-chip clients (i.e. Deutsche Bahn) seem unimpressed by the recent negative newsflow of alleged breach of compliance. In our view, S&T offers a compelling risk/return profile with an attractive valuation (P/E 2022 of 11x) strong growth expectations and >100% upside potential. We therefore reiterate to BUY, PT unchanged EUR 31.00