Deutsche Bank downgrades Eurowag after strong share price performance

(Sharecast News) - Deutsche Bank downgraded Eurowag on Wednesday to 'hold' from 'buy' following a strong share price performance, but lifted the price target to 110p from 90p. The bank said Eurowag's first-half results showed another resilient performance despite essentially flat economic growth in Europe in the same period.

"H1'25 net sales grew 15%, driven particularly by strong growth in toll net revenues as a result of CO2 charges in Germany and Austria as well as geographical expansion of its EETS solution," it noted.

Adjusted EBITDA was up 8%, while adjusted cash EBITDA was 14% higher, DB said, adding that the group delivered an adjusted cash EBITDA margin of 30.4%, similar to the level of the previous year.

"Cash generation was good, with net debt down to €244m and ND/EBITDA of 2.0x down from 2.6x in H1'24 and 2.3x at the end of FY24," Deutsche said.

At 1040 BST, the shares were 0.5% lower at 101p.