Steyr Motors AG: Initiating with a Buy Recommendation

NuWays AG has initiated coverage on Steyr Motors AG with a buy recommendation and a target price of EUR 59 over the next 12 months. Known for its defence-grade diesel propulsion technology, Steyr Motors stands out with its patented monoblock engine architecture and small-series production model. This combination offers unmatched power-to-weight ratios and extreme reliability, catering to military vehicles, boats, and auxiliary power units where resilience is key.

The company's position as a single-source supplier for prominent platforms like Leopard 2 is supported by leading OEMs such as Thales and Rheinmetall. With Europe increasing defence budgets and modernising ground forces, Steyr expects significant growth, with a backlog of €300 million anticipated until 2030. The firm forecasts a 37% CAGR in sales between 2024 and 2028, alongside an EBIT margin rising to 21% by 2028.

The newly introduced mobile power generator is expected to secure commercial orders by H1 2026, adding a new demand stream. International expansion efforts continue in regions like China, India, and the US, potentially driving further growth.