Equity Research

On this page you find the investment cases of our last equity research. Please read the disclaimer for our research products. Our products are written for institutional investors only. If you are an institutional investor and would like to receive our research, please send us a mail.

CropEnergies

Dec 7, 2022

Fair Value: €26.0 – – – – Rating: Strong Buy

First expansion step: Renewable Ethyl Acetate

CropEnergies has decided to invest in a renewable ethyl acetate plant, which could add EUR91m in sales and EUR10m in EBIT by FY2027/28. This is the first investment decision in a row of projects that deliver on the company’s “Innovation from biomass” strategy and which should drive the company to EUR1.8bn in sales and EUR325m in EBIT. This expansion should lead to a revaluation of the share to EUR26. With more news ahead, we reiterate our Strong Buy rating on the stock.

CropEnergies

Dec 5, 2022

Fair Value: 26.0€ – – – – Rating: Strong Buy

Production in Wilton continues – more news aheadith rather high confidence

Despite some decline in ethanol prices we confirm our earnings estimates and our valuation as reduced wheat prices have a largely compensatory effect. Moreover, benefitting from the UK’s Energy Bill, management has decided to continue production at its UK site. We now expect the final investment decision to build a 50.000t renewable ethyl acetate plant and EU’s final approval on the RED II amendments. With an upside of 80%, we reiterate our Strong Buy rating.  

Basler

Nov 11, 2022

Fair Value: 34.8€ – – – – – – Rating: Neutral

Order development reduces visibility

Easing procurement costs and the still inflated order backlog should help Basler in the next two quarters even if further old orders should be cancelled and the order entry should further normalize. However, order dynamics will have to start improving in Q1 if Basler wants to stay on the growth track in FY2023. As the global economic cooling makes this challenging we stick to our Neutral rating on the stock until visibility for 2023 increases.