NuWays AG Recommends "BUY" for Steyr Motors AG

In its latest update, NuWays AG has classified Steyr Motors AG with a "BUY" recommendation, setting a target price of €53 over the next 12 months. The report highlights Steyr Motors as a significant asset in the USV market, especially after the US-based Red Cat Holdings withdrew its takeover offer. Though reasons behind the withdrawal remain undisclosed, the interest indicates strategic value for potential acquirers.

Despite a strong order backlog exceeding €300 million, Steyr Motors faces limited near-term visibility, with only €37 million scheduled for 2026. Following weak Q1 sales and postponement of projects like the K2 tank, analysts have reduced revenue estimates for 2026. Nevertheless, the long-term outlook remains positive with key contracts expected from Urovesa and the Austrian MoD.

Beyond 2026, growth prospects are sustained by potential orders from Red Cat's USV production and additional contracts. NuWays AG maintains its "BUY" stance, adjusted from a previous target of €60, relying on a DCF model.