INDUS Holding AG Receives Positive Ratings Despite Mixed Q1 Results

INDUS Holding AG, analyzed by NuWays AG, is advised as a BUY with a target price of EUR 36.00, according to a research update. The report highlights mixed results in the Q1 earnings with a decline in sales but better-than-expected EBIT and solid cash flows. The German company saw a 9% year-on-year decline in Q1 sales due to less consumer spending, attributed to a weakening economy.

Although the sales dipped to €410m, the EBIT surpassed expectations at €26.7m. This achievement is notable considering the higher wages and pressures faced during the period. The efficient internal adjustments in their Infrastructure segment slightly mitigated the overall decline. Furthermore, the firm's ability to generate €6.1m in free cash flow, despite the challenging conditions, is highlighted as a positive outcome.

Looking forward, INDUS Holding AG has reconfirmed its FY24 guidance and expects revenue between €1.85-1.95 million and EBIT from €145-165 million. Despite potential price pressures and a cautious outlook on the construction sector, INDUS is positioned as an attractive mid-term investment, also boosted by a proposed dividend increase.