Singulus Technologies AG Sees Encouraging Prospects for FY24

NuWays AG has updated its research on Singulus Technologies AG, maintaining a "Halten" (hold) recommendation. With an ISIN of DE000A1681X5, the target price remains at EUR 1.60, an outlook effective for 12 months from June 28, 2024. Analyst Konstantin Völk cites a recovery in order intake as key to supporting growth in FY24.

Order intake has seen a significant rebound, reaching € 33 million in the first quarter, compared to € 43 million for the entirety of FY23. This improvement suggests better financial performance for the fiscal year.

The Solar segment is expected to remain vital, with projected revenue of € 50 million, a 28% increase year-on-year. Demand from major clients like CNBM and potential follow-up orders from Enel play a crucial role. Hydrogen technology, though less significant in the short term, could offer long-term revenue growth through partnerships with companies like Bosch.

Challenges remain, particularly regarding solvency. A failed proposal to extend € 12 million bearer bonds underscores this issue. However, the strong Q1 order intake lends credibility to achieving operational breakeven for FY24, with expected revenue nearing € 100 million.

NuWays reiterates a hold rating with a price target of € 1.60, based on a Discounted Cash Flow analysis.