Buy
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Original-Research: Schaeffler AG - from Quirin Privatbank Kapitalmarktgeschäft
Classification of Quirin Privatbank Kapitalmarktgeschäft to Schaeffler AG
Attractive level to build up positions After a solid start (Q1 2025: Sales flat qoq, but slightly lower yoy; adj. EBIT margin at upper end of FY guidance) into the current financial year we confirm our BUY rating with a slightly lowered price target of EUR 7.50 (7.60) based on our ROE/COE valuation approach, implying an upside potential of more than 90%. In addition to the announced synergy potential of EUR 600m p.a., realized 100% in 2029, as well as the performance enhancement program with structural measures of EUR 215m p.a., and one-off synergy measures of EUR 75m as part of the performance enhancement program, our focus is also on the timing or the gradual approach of the E-Mob segment to the break-even level, which in our view reflects a share price catalyst, currently the market is likely to take a rather cautious view. We do not expect any major news flow before/from the Q2 figures, the focus is clearly on the Capital Markets Day in September, when we expect a new medium-term guidance until 2028 with detailed statements to bolster the equity story. Compared to the selected peer companies, which are trading significantly higher, we see a significant undervaluation of the Schaeffler share, thus some catch-up potential. The current stock price offers an appealing entry point, and we recommend investors take advantage of this opportunity. It should not be forgotten that improved profitability will also result in an increased dividend payout, as management raised the range for the annual dividend payout ratio to 40-60% of net income adjusted for special items. You can download the research here: http://www.more-ir.de/d/32562.pdf For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/
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2135386 12.05.2025 CET/CEST
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