Original-Research: Deutz AG (von Quirin Privatbank Kapitalmarktgeschäft): Buy
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Original-Research: Deutz AG - from Quirin Privatbank Kapitalmarktgeschäft
20.11.2025 / 16:57 CET/CEST
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Classification of Quirin Privatbank Kapitalmarktgeschäft to Deutz AG
Company Name: Deutz AG
ISIN: DE0006305006
Reason for the research: update
Recommendation: Buy
from: 20.11.2025
Target price: 10.00
Last rating change:
Analyst: Klaus Soer
Mixed Q3/25 - Growth path intact
DEZ Q3/25 came in with a mixed picture. Order intake in Q3/25 declined by
15.3% yoy. to EUR 470.4m. Q3/23 sales growth of 14.6% yoy. to EUR 493.3m is
largely related to the first-time consolidation of acquired new operations.
DEZ achieved an Q3/25 (adj.) EBIT of EUR 28.4m (EBIT margin 5.8%) which
nearly quadrupled vs. the weak previous year quarter. The growing margin is
largely supported by the impacts of the recent cost and efficiency
optimisation programs. While major distribution markets like agriculture and
construction machinery remain weak, we expect DEZ continue to grow due to
the most recent value enhancing acquisitions. This includes the new acquired
service operations and the investments into the new defence segment. FY 25
sales should reach about EUR 2,100m (+15.8% yoy.) Adj. EBIT might reach a
level of EUR 111m, with a growing EBIT margin of 5.3%. Upcoming FY26 should
lead to an acceleration of growth on all relevant KPI, mainly driven by the
newly acquired operations in the high margin service segment. The most
recent acquisitions of Sobek in the defence segment (electrical drive
systems and components for UAV's) and the participation of DEZ in the next
financing round of ARX (unmanned ground vehicles, UGVs) are of strategic
importance and will extend the fast-growing defence unit of DEZ. We see DEZ
continuously in the transformation phase into products and services which
offer a higher profitability and industrial growth prospects. Our updated
DCF Valuation which include the most recent equity raise (10% rise in share
capital) still indicate a significant upside to the TP of EUR 10.00. This is
largely backed by an international peer comparison. DEZ trades currently
with large discounts to its international peers. Especially the pick up in
sales growth and margins might support the stock to close the value gap.
Rec. remains Buy.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=5d70a159e3a74b2215632f1533ecded9
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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2233716 20.11.2025 CET/CEST
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