Nabaltec AG: Strong Financials Amidst Cautious Outlook

NuWays AG provides an updated "BUY" recommendation for Nabaltec AG with a target price of €24. The company demonstrated robust fiscal performance in 2024, with a 1.7% increase in sales to €203.6 million. This growth was driven by higher sales volumes of fine and viscosity-optimized hydroxides, despite reduced demand for boehmite and Specialty Alumina.

Nabaltec achieved a 10.8% EBIT margin, translating to €22.3 million, supported by operational efficiency and working capital improvements. However, Q1 2025 showed a softer start, impacted by increased input costs, although upcoming price hikes may ameliorate the situation.

The firm's FY25 guidance remains cautious, forecasting 3-5% sales growth and a 7-9% EBIT margin. Potential support could come from Germany's planned infrastructure investments. Despite a valuation below book value, Nabaltec's financial stability underpins the optimistic outlook.