Andritz : In Pole Position
Andritz is well positioned to win upcoming major pulp mill projects (42% Pulp & Paper sales share in 2024), which should raise sales to the targeted level of € 9-10bn for 2027e and trigger a revaluation of the share. The group’s high-margin service business should continue to grow and support an increase in the comparable EBITA margin to over 9% by 2027e (vs 8.9% in 2024). The higher group order intake in Q4 2024 (+27% vs css) confirms the improved business sentiment in all segments. With its asset-light business model, Andritz averaged a 13.9% ROIC in the last five years and has a € 812m net cash position giving headroom for M&A and capital returns. We raise our forecasts and our TP to € 75 (€ 70) and reiterate our Outperform rating with an upside potential of more than 40%.Andritzis develops production systems and industrial process solutions for standard and specialized products. Co. maintains five business areas. Pulp and Paper provides technology and services for production of various grades of pulp and fiber for the manufacture of paper, board and tissue. Metals develops and manufactures plants for the production of cold-rolled carbon steel, stainless steel, and non-ferrous metals strip. Environment and Process provides products and services for mechanical and thermal solid or liquid separation. Feed and Biofuel develops and produces equipment for production of feed. Hydro supplies turnkey electromechanical equipment and services for hydro power plants.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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