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High capacity utilisation, growth still >15% but peer multiples have slightly declined

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All for One Steeb AG (ISIN DE0005110001, Prime Standard, A1OS GY)  performed strongly in Q1 2017/18 (calendar Q4), with sales growing by around 16%. Quarter-on-quarter sales growth was above 15% for the third time in succession, and therefore well above the 8% increase we are forecasting for 2017/18e. EBIT rose by 5%, lagging sales growth as a result of continued high investment (including investment in personnel), increased use of consultancy resources from the partner network and a negative one-time effect (€0.5m) in the LOB segment. We regard our sales forecast for 2017/18e as relatively conservative, even though it is at the upper end of the guidance. More moderate sales growth in the rest of the year could actually prove positive for the EBIT margin because a higher proportion of in-house personnel could be assigned to projects. We are therefore leaving our estimates unchanged. Peer group valuations have slightly declined in the wake of the general market correction. All for One Steeb's operating performance is convincing and the share is proving robust in the current market environment. Since it has not yet reached our price target, we are confirming our buy rating with a price potential of just below 10%.

Our price target for shares in All for One Steeb, based equally on the DCF valuation and the peer group analysis, is €76.20.