DO & CO AG: Positive Outlook Amid FX Challenges

DO & CO AG's recent research update by NuWays AG reaffirms a "BUY" recommendation with a target price of €266. The company's Q3 25/26 performance showed resilience against currency fluctuations. Despite a 2% decline in reported sales to €630m, fx-adjusted sales grew by 16%, signaling strong underlying demand. The EBIT margin saw a slight improvement to 8.9%, aided by a reduction in material expenses.

Airline Catering, representing 80% of the group's business, experienced a minor 3% decline in sales but showed a 19% increase fx-adjusted. This sector is poised for growth, supported by expected passenger increases and significant expansions at Istanbul Airport.

Additionally, DO & CO's participation in closed tenders is promising, with a win rate of over 50% in 2025. This trend, coupled with steady performance in International Event Catering, positions DO & CO AG for potential growth in Q4 as currency challenges ease.