NuWays AG issues Buy recommendation for R. STAHL AG

NuWays AG recently updated its recommendation on R. STAHL AG, affirming a Buy outlook with a 12-month target price of €31.00. This analysis, carried out by analyst Christian Sandherr, highlights several structural trends likely to boost the company's medium-term growth.

R. STAHL began supplying LED lighting solutions for a nuclear power station in the United Kingdom (Hinkley Point C), a project partially owned by EDF. This collaboration presents significant revenue potential, especially as EDF plans to renovate 54 reactors in France and build 6 new ones by 2050.

Furthermore, the rise of the LNG (Liquefied Natural Gas) sector offers R. STAHL growth opportunities, in particular thanks to growing European demand for energy independence in the face of Russian gas imports. R. STAHL positions itself as a world leader in explosion protection for tankers, terminals and LNG liquefaction/regasification facilities.

However, Germany's chemical industry is experiencing a slowdown due to rising energy prices. Despite this, NuWays AG anticipates a return to growth in the medium term, with an expected increase in orders and a solid EBITDA margin.

The analysis highlights that R. STAHL shares are currently undervalued by the market, making the investment attractive. NuWays AG therefore maintains its buy recommendation with an unchanged price target of €31.00, based on a discounted cash flow assessment.