NuWays AG Recommends Buy on DO & CO AG

NuWays AG has issued a buy recommendation for DO & CO AG, setting a target price of EUR 266 over a 12-month horizon. Analysts highlight the company's strong customer satisfaction and high contract renewal rate at 95%, alongside winning 5-10 new customers each quarter, chiefly among smaller airlines.

DO & CO AG boasts prestigious partnerships, providing catering services for events like Formula 1 and UEFA, ensuring 70% of sales are contract-based until 2030. This stability enhances sales visibility and protects margins, thanks to clauses that allow passing on inflationary costs.

The company anticipates a rise in margins attributed to increased customer wins and operational leverage. With a target EBIT margin of 10%, DO & CO aims for substantial future dividend growth, planning a € 2.78 DPS payout for FY'25/26.