DO & CO: value á la carte (upgraded to BUY)
We have upgraded DO & CO to BUY (from Hold), and set our new 12M price target (PT) at EUR 224/share. Since our August 2025 downgrade, the shares have fallen 23%, despite no fundamental change in the investment case, in our view. The 2Q FY26 results were in line with our estimates and management kept its FY26E guidance unchanged. IATA’s international traffic data remain supportive, and management sees no pressure on flights or passenger numbers. The group’s defensive model – anchored by long-term fixed-margin contracts – is an advantage versus airlines. As we see no evidence for downward revisions in our estimates from August 2025, we keep our mid-term forecasts broadly unchanged; while, for FY26E, we have increased our EBITDA estimate by 3%, on the back of the 1H FY26 results. We forecast FY25-28E EBITDA and net profit CAGRs of 10% and 14%, respectively. DO & CO is trading at 17.3x P/E and 6.9x EV/EBITDA, on our FY26E estimates, representing 5% and 32% discounts vs. its peers, respectively, and it is trading below its historical pre-pandemic 5Y averages (20x P/E and 8x EV/EBITDA). As the expected 2024-27E (FY25-28E for DO & CO) peers’ median CAGRs for the EBITDA and net profit are broadly in line with what we expect DO & CO to deliver over the next three years, we view the company’s current valuation discount as unjustified.Do & Co AG is a foodservice company. Co. maintains three business divisions. Its Airline Catering division provides gourmet food for passengers of airline companies such as Austrian Airlines, Turkish Airlines, Air France on long-haul flights. Co.'s flying cooks prepare fresh meals on-board. The International Event Catering division provides services such as handling the menu and the provision of food for sporting events, including tennis and golf tournaments, skiing events and Formula One Grand Prix races. The Restaurants, Lounges & Hotel division operates three restaurants; five restaurants with bars and one at the Casino Baden, and three bakeries under the Demel brand.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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