NuWays AG Recommends BUY for Rosenbauer International AG

NuWays AG has updated its recommendation for Rosenbauer International AG to "BUY" with a target price of EUR 50.00, citing a positive outlook for the company following a strong first quarter.

Rosenbauer is set to release its half-year report on August 9th. Analysts expect an 11% year-over-year revenue increase to EUR 297 million, bolstered by improvements in the supply chain and significant price increases. These factors should also see the EBIT margin rise by 1.8pp to 3.9%, with EBIT expected to hit EUR 11.5 million, a 104% increase year-over-year.

The significant price increases implemented in FY23 are now reflected in higher sales, particularly for firetrucks, with order book prices up 20% from the previous year. This trend is expected to drive further sales growth, supported by an 18% improvement in order intake, driven by structural trends such as climate change and an aging population.

Additional confidence comes from Rosenbauer's main competitor, Pierce, which reported strong Q2 results due to a recovering supply chain and price increases. This positive outlook is shared by NuWays AG, who reiterate their BUY recommendation.