NuWays AG Initiates Coverage on Semperit AG Holding with BUY Recommendation

NuWays AG has initiated coverage on Semperit AG Holding, issuing a BUY recommendation with a target price of €18.20 over a 12-month horizon. Semperit, a specialized niche player in rubber products, is significant in European and global markets with products like hoses, seals, and conveyor belts. It operates through two main segments: Semperit Industrial Applications and Semperit Engineered Applications, each with distinct strategies.

While facing a cyclical downturn, the company has invested in enhancing capacity, notably acquiring the RICO group in 2023. With disciplined cost management and strategic investments, Semperit is poised for a strong recovery, backed by Germany's €500bn infrastructure initiative. Current valuations suggest significant potential reward relative to risks, according to NuWays AG.