Analysts Research Reports- Archive 2006
| Date | Bank | Author | Recommendation | Downloads |
|---|---|---|---|---|
| 15.12.2006 | Berenberg-Bank | Sven-Erik Hintz | Downgrade from Buy to Hold | Details |
| Fairly priced - downgrade to HOLD - Topic: Price target reached - down to HOLD... - Pfeiffer's share price is now reflecting most of the value the company is expected to create based on CFRoEV2007e-2008e... - Based on CFRoEV2008e Berenberg would derive at a PT for the company of EUR 69... |
||||
| 12.12.2006 | MM Warburg | Eggert Kuls | Downgrade from Buy to Hold | |
| 05.12.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| Rolling valuation to 07e-08e, acquisitions to come due to the strong free cash flow generation (FCF/sales consistently above 12 %) allows a stable dividend payment coupled with a share buyback programme recently launched. Two targets are identified (to add more than EUR 20m and less than EUR 10m respectively to top line)... Rolling valuation to CFRoEV07e-08e yields a new PT of EUR 66.00 (old PT: EUR 63 on 07 CFRoEV). BUY... |
||||
| 17.11.2006 | LBBW | Alexandra Hauser | Buy | Details |
| Upgrade stock price rating to EUR 68. | ||||
| 10.11.2006 | HSBC | Thorsten Zimmermann | Neutral | |
| 08.11.2006 | Bankhaus Metzler | Markus Turnwald | Buy | |
| 08.11.2006 | AC Research | Henning Wagener | Accumulate | |
| 08.11.2006 | Cazenove | K. Khemani | Outperform | Details |
| Strong Q3 results, FY 06 & medium term outlook revised upwards... Pfeiffer Vacuum released strong Q3 numbers yesterday beating our and the market's expectations. Management has raised its FY outlook; subsequently we have raised our FY 06 & medium term outlook... |
||||
| 08.11.2006 | Nord LB | Ansgar Rauch | Hold | |
| 07.11.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| Excellent Q3 figures out - est./ PT up Topic: Pfeiffer Vacuum released excellent Q3 figures this morning. Strong growth in the turbo pump business, up 26.1% yoy drives both top and bottom line growth. Conference call scheduled for 5pm CET... The figures clearly reiterate the BUY case as the company proves to successfully expand its turbo pump business. Estimates are adjusted accordingly as 2006 growth rates for turbo pumps and analytical components are upgraded. This feeds into slightly higher estimates going forward leaving growth expectations for 2007e and 2008e unchanged... Hence, a new PT is derived at EUR 63.00 (old PT: EUR 62.00) based on CFRoEV2007e. BUY... |
||||
| 07.11.2006 | BHF-Bank | Tobias Loskamp | Strong Buy | Details |
| Closing price: EUR 53.05 Strong sales growth and an excellent and once more improved EBIT margin in 3Q06 convinced management to increase FY06F guidance... Management continues to see strong demand for Pfeiffer Vacuum's products... We increase our target price to EUR 60.00 (EUR 58.00) based on a DCF model and reiterate our Strong Buy rating on possible positive near-term newsflow... Pfeiffer vacuum reported solid 3Q06 figures across the board that were above our and consensus estimates. Sales grew strongly by 15.5% and the EBIT margin improved to an impressive 24.7%, an increase of 0.5 ppt QoQ and 1.2 ppt YoY... |
||||
| 07.11.2006 | West LB | Sven Kürten | Add | Details |
| What to do with the cash? After an excellent Q3 and an increase in FY 2006 guidance, we have increased our earnings estimates and our target price to EUR 63. In the conference call, management discussed several options for the use of its cash pile, and these include acquisitions, an extra dividend or a share buyback programme, all of which should support the company's share price, in our view. We reiterate our Add recommendation... What to do with the cash. At the end of Q3, Pfeiffer Vacuum's net debt position (including pension provisions) was EUR 54m. Management said that it was still planning to make a few smaller acquisitions, but also made pretty clear that it would not pay the extraordinarily high prices that are driven by the current M&A mania. If these potential acquisition targets turn out to be too expensive management will consider paying an extra dividend in 2007 or launching a share buyback programme. Either some clever acquisitions that are a good fit for the product portfolio or the distribution of cash to shareholders would support the share price, in our view... |
||||
| 07.11.2006 | DZ Bank | Harald Schnitzer | Buy | |
| 07.11.2006 | Citigroup | Claus Roller | Buy | Details |
| 3Q Upgrade, Back to Backing Pumps Strong 3Q - Pfeiffer reported 3Q EBIT up 21.5% to EUR 11.5m compared to our forecast of EUR 10.3m. Gross Margin stayed at a high 49% thanks to the strong contribution of turbopumps, of which sales were up 26%... Guidance upgrade - Pfeiffer Vacuum upgraded its revenue guidance from EUR 172m to EUR 175-178m and its EBIT margin guidance from 23% to above 24%... Use of Cash - At the end of September, Pfeiffer Vacuum had EUR 76m net cash, which it wants to use for acquisitions in related companies, or by returning it to shareholders via dividends or share buybacks... Backing Pump Potential - Pfeiffer currently sells 16k turbo-pumps but only 6k backing pumps. It reported that it has now overcome teething problems with its dry backing pump and plans to launch a new electro-drive backing pump in 2H in mid 2007. It plans to sell more than 10k backing pumps, which would add some EUR 28m sales over the next 3-5 years... Earnings upgrade - We upgraded our EPS forecasts by 7% for 2006 and 11% for 2007 and factored into our 2008 forecast the benefits from the German tax reform. We therefore increased our price target from EUR 55 to EUR 65 and reiterate our Buy/Medium Risk rating... |
||||
| 07.11.2006 | Fairesearch | Heinz Steffen | Buy | Details |
| Strong performance in Q3 - mission completed Revenues increased 15.5% and EBIT 21.5% In the third quarter ending September revenues increased 15.5% to EUR 46.3m (fairesearch estimates: +8.8% to EUR 43.6m). Gross margin reached 48.9% and EBIT increased 21.5% to EUR 11.5m (fairesearch estimates: 15.7% to EUR 10.9m). EBIT margin increased from 23.5% to 24.7% (estimate: 25%). The performance was driven by the most profitable segment turbo pumps. Revenues of turbo pumps increased 26% from EUR 16m to EUR 20m. Order intake went up 12.3% to EUR 43.8m. In the first nine months revenues increased 12.2% to EUR 132m and EBIT improved 21.8% from EUR 26.4m to EUR 32.2m. EBIT margin went up from 22.5% to 24.4%... Guidance revised upwards. Due to the strong performance of the third quarter management revised guidance. In 2006 revenues are expected to range between EUR 175m and EUR 178m (previously EUR 170m). EBIT margin will be above 24% (previously 23%)... |
||||
| 24.10.2006 | Bankhaus Metzler | Markus Turnwald | Buy | |
| 20.10.2006 | Fairesearch | Heinz Steffen | Buy | Details |
| Strong performance in Q3 expected Revenues will increase 8.8% and EBIT 15.7% In the third quarter ending September we expect revenues to increase 8.8% to Eur 43.6m. Gross margin will reach 49.1% compared to 46.4% in the third quarter 2005. We expect EBIT to increase 15.7% to Eur 10.9m and EBIT margin will rise from 23.5% to 25%... We leave our "BUY" recommendation and target price of Eur 58.50 unchanged... |
||||
| 19.10.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| Pfeiffer Vacuum Technology will not deliver breaking news you see on CNN. But dare you call a company boring delivering sustainable returns of 30%? The company has a strict focus on vacuum pumps and components and a high competitive quality based on material competences and vast know-how of its customers' processes in which its turbomolecular pumps operate. This exhaustive know-how is utilised for the necessary adaption of pump material to operate care-free in the desired environment, hence, it allows Pfeiffer to supply top quality... The recent consolidation of the share price presents an excellent buying opportunity. CFRoEV2007e sets a PT of Eur 62.00 which is corroborated by DCF. BUY... |
||||
| 21.08.2006 | Cazenove | K. Khemani | Outperform | Details |
| We are initiating coverage on Pfeiffer Vacuum. We believe the company operates in a long-term growth market (+3% p.a), albeit with some short-term volatility from its exposure to the semiconductor industry (15% of sales)... We believe the group is well-positioned to grow its market shares further, due to the following reasons: - Its technologically superior products (e.g. the ball-bearing turbopump concept). The group spends 4% of sales on R&D. - Its increased efforts to expand in the fast-growing Asian markets. Asia currently accounts for between 17-20% of group sales and high levels of investment in the semiconductor and analytical industries from economies like China are facilitating this expansion. - The scope for the group to increase its business in backing pumps, where it is underrepresented. Backingpumps sold by the group are currently over-engineered and, thus, too expensive. We believe the group is considering acquisitions in this area... The company has high margins (EBIT 24% in 2006E) and a strong balance sheet (net cash at end-2006E of ?81m)... Unfortunately, the group?s major competitors are all parts of larger, more diversified groups, so there is no direct peer group. The stock currently trades on 15.5x 2006E and 14.4x 2007E on a PER basis and 7.4x 2006E and 6.7x 2007E EV/EBITDA. This puts it at a discount in relative terms, to our mixed group of small/midcap, low/high margin, German general industrials, namely at 19% in 2006E and 9% in 2007E on a PER basis and 12% in 2006E and 7% in 2007E on an EV/EBITDA basis. We feel this discount will narrow over time. We therefore initiate with an OUTPERFORM recommendation on the stock with a DCF value of ?54 (valuation at end of report), which suggests 15% upside to the current price... |
||||
| 11.08.2006 | DZ Bank | Harald Schnitzer | Buy | Details |
| - | ||||
| 09.08.2006 | Deutsche Bank | Benjamin Kohnke | Buy | Details |
| We view share price weakness post Q2 results as buying opportunity Pfeiffer Vacuum shares have lost approx. 17% from their highs at the beginning of May, mainly as a result of the sell-off in the German small- and mid-cap space. We continue to see deep value in Pfeiffer's core business, which could be further unlocked by a more efficient balance sheet. Q2 results and management statements strongly reaffirm our investment case. We therefore view any share price weakness post Q2 results as an attractive buying opportunity... Slow down in top-line growth does not signal any trend change, in our view Q2 results were fully in-line with our estimates at all levels. However, we believe that the market might have been disappointed by the slowdown in top-line growth to 5.2% yoy, compared with 16.2% in Q1. We believe June is likely to have dragged down the company?s performance due to fewer working days, but do not think this signals any trend change. Management indicated that demand has picked-up in July and that 6-8% top-line growth for FY06E seems ?conservative?... Leveraged acquisition scenario becomes more and more likely During the analyst meeting, management reiterated its intention to close the due diligence process for a potential acquisition by the end of September at the latest. We estimate that Pfeiffer would have to take up approx. Euro 50m of additional debt to finance the potential takeover, which would be a first step to unlocking incremental shareholder value through a more efficient balance sheet structure, in our view... |
||||
| 07.08.2006 | Fairesearch | Heinz Steffen | Buy | Details |
| Revenue growth weaker than expected in Q2 Revenues increased 5.2% and EBIT 15.2% - In the second quarter ending June revenues increased only 5.2% to ?42m (estimate: 11.7% to ?44.6m). Despite higher energy and raw materials costs gross margin improved from 46.5% to 48.8% (estimate: 49.8%). EBITDA margin increased from 24.1% to 27.8% (estimate: 26%) and EBIT margin improved from 22.1% to 24.1% in the second quarter. The turbo pumps were mainly responsible for the strong performance. Revenues of turbo pumps increased 8.7% to ?18.5m in the second quarter. This business segment contributed 44% to total revenues. In the first half year order intake increased only 4.6% to ?86.8m and order backlog declined 2.5% to ?30.6m. The low order intake was mainly related to a weak performance in June... - Strong business in Asia and the USA. Net revenues in Asia increased 16.3% to ?8.4m and in the USA 15.5% to ?10.5m. In Asia the Japanese and Indian market showed the strongest performance. Revenues in Germany however declined 9.8% to ?9.9m... - Guidance not yet revised upwards. Although revenues in the first half year increased 10.5% to ?85.7m and EBIT 22% management did not revise the guidance upwards (revenue increase between 6% and 8% and EBIT margin of at least 23%)... |
||||
| 04.08.2006 | Bankhaus Lampe | Roland Könen | Hold | Details |
| - | ||||
| 04.08.2006 | BHF-Bank | Tobias Loskamp | Strong Buy | Details |
| Closing price: EUR 78.42
Pfeiffer Vacuum's 2Q06 figures came in roughly 5% below our estimates and just short of consensus, thus a bit disappointing. Apparently, June sales came in weak, especially in Germany. Since management indicated that July sales have been very strong again, we do not fear that the level of sales growth will remain weak in the long term. We maintain our Strong Buy recommendation with a slightly reduced target price of EUR 58.00 (prev. EUR 59.00). Pfeiffer Vacuum presented 2Q06 figures below our estimates. Sales came in at EIR 42.0m (vs. our estimate of EUR 43.9m) or +5.2% YoY. EBIT was EUR 10.2m (vs. EUR 10.6m) and net income was EUR 6.3m (vs. EUR 6.7m). The results were also just short of consensus. On the positive side, the company presented a record EBIT margin of 24.2% that resulted from a strong product mix and an initiative to optimize purchase prices... Sales were again driven by strong demand from the US (+16% YoY) and Asia (+19% YoY), while sales in Germany declined by 10% YoY and sales in the rest of Europe stagnated. The strongest industry growth trends QoQ stemmed from the analytic and coating industry while sales with R&D and general industrial clients were weaker than in the previous quarter... |
||||
| 04.08.2006 | Bankhaus Metzler | Markus Turnwald | Buy | |
| 04.08.2006 | MM Warburg | Eggert Kuls | Hold | Details |
| - | ||||
| 04.08.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| Analyst conference feedback Topic: Analyst conference feedback. Outlook remains positive. Double-digit growth looks possible. Adjusting estimates and PT up to ? 63 (old PT ? 62)... Pfeiffer's competitive quality is impressive with a unique product in the market that at this point in time seems much ahead of competitors - it's turbo pump. Rising market shares in a mature oligopolistic market where Pfeiffer?s turbo pumps grow by rates above 20% impressively proves that Pfeiffer has a unique standing which is based on product quality. Customers perceive the adds value as Pfeiffer's pumps create a stable vacuum and work reliably as Pfeiffer satisfies the high demand on precision (pumps rotate with up to 90,000 rpm evacuating up to 2,400 litres per second). Hence precise production is key with tolerances below 1/1,000 milimeters for drilling and similar work... With a gross margin close to 49% for the group in H1 and 55% for the turbo pumps, Pfeiffer proves to keep prices at high levels and has done its homework on procuring preconditioned aluminium... Operating profitability looks to remain close to 24% given its tight cost control... Berenberg estimates on gross margins are revised upwards from 47.5% to 48.0%. Hence EBIT should rise from ? 41m to ? 42m. These slightly adjusted estimates lead to a new PT of ? 63 (old PT ? 62)... |
||||
| 03.08.2006 | AC Research | Henning Wagner | Accumulate | Details |
| - | ||||
| 03.08.2006 | West LB | Sven Kürten | Add | Details |
| Q2 first take
Q2 results came in broadly in line with our estimates. The order intake was flat compared to the previous year, which we find a bit disappointing. Management basically reiterated its full-year guidance of an increase in revenues of 6-8 % and an EBIT margin of at least 23 %... |
||||
| 01.08.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| Topic: Preview on Q2 numbers due on August 3rd. The company holds an analyst conference at its headquarters near Frankfurt this Thursday. The company will very likely upgrade its guidance on Thursday due to its still strong performing business...
Top line is expected to grow 5.2% yoy to EUR 42.0m. Main driver is once again expected good sales to the industrial client base... The bottom line is likely to be burdened by a decreasing gross margin (up 0.7pp yoy, but significantly below Q1) as many contracts for input factors were up for renewal and had to be prolonged at less favourable conditions as these contracts are very long-term and thus, had not seen rising factor costs for several years. However, the real impact can also be significantly lower as the company was not too worried by these factors for this quarter's profitability... |
||||
| 31.07.2006 | BHF-Bank | Tobias Loskamp | Strong Buy | Details |
| Pfeiffer Vacuum is set to report 2Q06F figures on 03 August 2006 at 8 am (CET). An analysts' meeting will be held thereafter at the company's production site in Asslar...
We expect the presented figures to be quite strong and above consensus as sector surveys by VDMA, especially for vacuum pumps and compressors, showed a continuation of the very positive trend seen in 1Q06 (PFV sales +16% YoY). Also, the published economic data indicated a strong investment willingness worldwide over the respective period. In 1Q06 sales improvement was helped by a strong US$ compared to 1Q05, which we do not expect to have happened in 2Q06F... As written in our initiating coverage report of 24 May 2006, the underlying factors of this growth should be a favourable competitive environment, expansion of selling activities, innovations and price increases. The main growth regions should be Asia and the US... |
||||
| 29.07.2006 | asdfsdf | asdf | kh | Details |
| kjh | ||||
| 29.07.2006 | bank | autoh | b | Details |
| d | ||||
| 10.07.2006 | Fairesearch | Heinz Steffen | Upgrade from Hold to Buy | Details |
| The success story will continue in Q2... Revenues will increase 11.7% an EBIT 22.3%... In the second quarter ending June we expect revenues to increase 11.7% to EUR 44.6m. Higher energy costs and raw materials will have a slightly negative impact on gross margin. We expect gross margin to decline from its record level of 50.5% in the first quarter 2006 to 49.8%. Compared to the second quarter 2005 gross profit will improve 19.6% from EUR 18.6m to EUR 22.2m. EBITDA margin will increase from 24.1% to 26%. We estimate EBIT margin to increase from 22.1% to 24.2% in the second quarter.Net profit margin will increase from 13.4% to 16.5%. We expect EPS to increase 26.9% from EUR 0.67 to EUR 0.85... Share buy-back program launched successfully. During June management started the share buy-back program. In total 4.6% or EUR 1.03m (22,000 shares) of the subscribed share capital had been bought back. The average purchase price was EUR 46.87 per share... Guidance revision expected. Due to the strong performance in the first half year we expect management to revise guidance upwards... |
||||
| 27.06.2006 | LBBW | Alexandra Hauser | Buy | Details |
| - | ||||
| 24.05.2006 | BHF-Bank | Tobias Loskamp | Strong Buy | Details |
| Pfeiffer Vacuum is the global market leader in turbomolecular pumps. In addition, it offers further products and services for the vacuum technology market. In our view, Pfeiffer is just ahead of expanding its market share due to the very favourable competitive environment. Furthermore, its sustainably strong sales growth is backed by an expansion of selling activities, innovations, and price increases... We are initiating coverage of Pfeiffer Vacuum with a Strong Buy rating and a target price of EUR 59.00... The vacuum market is dominated by six companies. In contrast to Pfeiffer Vacuum its direct competitors Alcatel Vacuum Technology, BOC Edwards and Leybold Vacuum are all part of a large conglomerate... Our estimates for FY06F exceed company guidance for the full year and consensus estimates. Following the very good numbers in 1Q06 we feel that our estimates have been confirmed so far and expect that the company will lift its FY06F guidance after the publication of 2Q06F figures... We are initiating coverage of Pfeiffer Vacuum with a Strong Buy recommendation and a target price of EUR 59.00. In view of acquisitions, as planned by Pfeiffer Vacuum´s management, the target price could go up further in the medium term... |
||||
| 22.05.2006 | Berenberg-Bank | Sven-Erik Hintz | Upgrade to Buy | Details |
| Stock of the week, upgrade to Buy Topic: Pfeiffer is our stock of the week. Looks cheap on all fundamentals. Recent share price decline - driven by a weaker TECDAX (- 11% last week) makes Pfeiffer Vacuum more attractive regarding upside potential... Pfeiffer Vacuum is the largest producer of turbo pumps (45% of sales with market shares above 30% globally) and operating independently while competitors belong to conglomerates. Nothing has changed fundamentally - here some reminders on Pfeiffer Vacuum`s outstanding quality: - 8,000 customers (none above 5% of total sales) around the globe in different industries - sustainable level of an EBIT margin of 23% (compared to industry average of 5%) - no net debt; the company has a cash pile of Eur 68m - a "shopping list" is in mind probably in the area of backing pumps, but target must be profitable and Pfeiffer is not willing to pay more than 8-10 x EBIT - strong management (CEO is more than 12 years running the company); lean organisation... The company guides sales growth in 2006 of 6-8%. After the strong sales increase in Q1 of 16% Pfeiffer Vacuum might change its FY guidance after releasing Q2 figures. Order intake in Q1 was up 8.9% yoy... Pfeiffer does not see a negative impact due to the increase in EUR vs. USD. The company is quite positive as many parts are sourced in the US (30% of sales) which gives Pfeiffer a strong natural hedge... |
||||
| 09.05.2006 | Commerzbank | Saul Rans | Hold | Details |
| 2006 Q1 results Pfeiffer's Q1 (Mar) results issued last week kick off the year in style. Sales growth of 16 % reflects a stronger willingness to invest on the part of Pfeiffer customers across a range of industries and regions. EBIT margin of 24 % reflect a particularly favourable product mix, but also tight cost control. After the rise in the risk-free rate we cut our target price from EUR 53.0 to EUR 52.2, but we retain our Hold rating... |
||||
| 05.05.2006 | Bankhaus Lampe | Roland Könen | Hold | Details |
| - | ||||
| 04.05.2006 | Bankhaus Metzler | Markus Turnwald | Buy | |
| 03.05.2006 | Fairesearch | Heinz Steffen | Hold | Details |
| Another strong quarter Revenues increased 16.2% and EBIT 29.3% In the first quarter ending March revenues increased 16.2% to Euro 43.7m and EBIT 29.3% to Euro 10.5m. For the first time in the last five years gross margin jumped to 50.5%. EBIT margin improved from 21.7% in the first quarter 2005 to 24.1%. Order intake increased 8.9% to Euro 45.1m and order backlog increased 2.7% to Euro 30.9m. Revenues in Germany went up 24% to Euro 11.8m, in the USA 40.2% to Euro 10.7m and Asia/Pacific +33.2% to Euro 8.2m. Business in Europe declined 8.3% to Euro 12.7m mainly due to one large order in Q1`05... Revenues of turbo pumps increased 35.5% to Euro 19.7m. The strong increase in EBIT margin is mainly due to the successful turbo pumps business. These products are the most profitable within the group and contributed already 45% to total Q1 revenues. Revenues of fore pumps increased 9.3% to Euro 5.5m and demand for Vacuum instruments and components increased 14.8% to Euro 12m. Only the revenues of Vacuum systems declined 70.1% to Euro 0.6m. The reason for the decline was a large order for a coating system in Q1`05 which could not be repeated in 2006... |
||||
| 03.05.2006 | West LB | Sven Kürten | Accumulate | Details |
| - | ||||
| 03.05.2006 | Berenberg-Bank | Sven-Erik Hintz | Hold | Details |
| Q1 significantly above estimates - adj. estimates/PT Topic: Pfeiffer Vacuum published its Q1 results this morning. Figures came in ahead of expectations mainly due to an even stronger turbo pump business than anticipated... The main reason for the strong performance is US business up 40% yoy to EUR 10.7m driven by the analytical and semiconductor industries. Asia likewise grew 33% yoy to EUR 8.2m... The turbo pump is now responsible for 45% of total sales, up 6pp yoy from 39% in Q1 last year. This also translates into a higher than anticipated gross margin as the turbo pump business is a particularly high-margin business... |
||||
| 03.05.2006 | HSBC | Thorsten Zimmermann | Neutral | Details |
| STRONG Q1 BUT CAN IT GET ANY BETTER? * Strong Q1 results are clearly ahead of expectations * Management indicated it may raise its 6-8% revenue guidance for 2006 after H2 figures * We are raising our 2006e and 2007e figures and also our notional target price to EUR58.0 from EUR46.4, but we reiterate our Neutral rating, as we consider the stock fairly valued... GOOD Q1 AND FAVOURABLE ECONOMIC ENVIRONMENT TRIGGER INCREASE IN ESTIMATES Pfeiffer released a good set of Q1 figures, with higher-than-expected sales and profitability. Again, the company was able to show a decent FCF. The 6-8% sales growth guidance from management is clearly outdated, and not surpassing it would constitute a clear disappointment, in our view. From a different angle, management gave a sales target of EUR290m by 2010, which would require an average growth rate of 12.7% pa. In the currently favourable environment, the company must thus show a double-digit growth rate. Based on the good start and the expectation of a recurring strong demand also from the semi equipment industry in 2006, we are raising our 2006 estimates of sales to EUR180m from EUR172m, implying 12.8% growth yoy, and of EPS to EUR3.20 from EUR2.91. For 2007, we expect a softening of the cyclical growth and hence EUR179-190m, implying a growth rate of only 5.6% yoy, as we are concerned that the cycle might turn in 2007 again... |
||||
| 03.05.2006 | Deutsche Bank | Benjamin Kohnke | Buy | Details |
| Q1 results review - still a lot of value left Further earnings upgrades appear likely Q1 results clearly exceeded our expectations and led us to slightly revise our EPS forecasts for the group by 4% and 5% for FY06 and FY07, respectively. While we continue to stay close to management's guidance for FY06 (+6-8% in sales and EBIT margin of 23%), sales growth of 16% yoy and an EBIT margin of 24.1% in Q1 leave room for further earnings upgrades. In addition, management re-iterated the goal to reach Euro 290m of sales by FY2010, which is not incorporated in our forecasts yet. Hence, we believe the stock still offers a lot of value. Buy... Q1 results set record marks in profitability Q1 sales rose by 16% yoy to Euro 43.7m, mainly driven by strong revenue growth in the US (+40%) and Asia (+33%). In addition, Germany performed very well for the first time in many quarters, as revenues grew by 24% and included orders from promising growth industries, e.g. thin-film solar cell production. Gross and EBIT margins set new record marks at 55.5% and 24.1%, respectively... |
||||
| 21.04.2006 | GSC Research | - | Buy | Details |
| - | ||||
| 07.04.2006 | Bankhaus Metzler | Markus Turnwald | Buy | |
| 29.03.2006 | Bankhaus Lampe | Roland Könen | Hold | Details |
| - | ||||
| 27.03.2006 | MM Warburg | Eggert Kuls | Hold | Details |
| - | ||||
| 27.03.2006 | Commerzbank | Saul Rans | Hold | Details |
| Sales rose by 5% and EBIT by 6% in 2005 - the going is tough when margins are so high already. The outlook for 2006 is a realistic-looking growth rate of 6%-8% in sales and profits. Pfeiffer gets the all-clear from our financial health check - the fall in cash flow from operations simply reflects the timing of tax paid. We have raised our target price to EUR 53 (previously EUR 46) but retain our Hold rating... Positive trading again in Q4, outlook is more of the same Trading in Q4 followed the pattern of previous quarters. The main revenue growth drivers were the US and Asia, while productivity gains and operational gearing offset higher wages and raw material costs. We expect a broadly similar pattern all round in 2006... Pfeiffer in talks about an acquisition Pfeiffer announced with the results that it is in talks about an acquisition that could add EUR 20m - EUR 40m to annual sales. We have long held the view that it will be hard for Pfeiffer to close a material acquisition that makes strategic and financial sense - doing so would be a significant achievement... Financial health check Pfeiffer's cash flow from operations actually declined slightly y-o-y in 2005, but this reflects higher tax paid after sharply higher profits in 2004. Thanks to Pfeiffer's exceptional profitability (after tax ROIC > 50%), cash and financial investments rose by another EUR 16m and now stand at EUR 70m... Hold rating, target price EUR 53 (previously EUR 46) We have raised our 2006 EPS by 5% and our target price from EUR 46 to EUR 53 (our 2007 franchise value). A value-creating acquisition could raise this target, as could a distribution of surplus capital to shareholders, but only if it geared up the balance sheet, which we do not expect. We retain our Hold rating ... |
||||
| 24.03.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy | Details |
| "FY 2005 figures released Topic: Pfeiffer published FY 2005 results today. As preliminary figures were explicit, no major surprises are visible. However, a higher dividend payment of now EUR 1.35 has now been incorporated in the model. An analyst conference in Frankfurt takes place at 1pm CET... A slightly more favourable tax rate of 38% (vs. 39.5% previously in the model) raised the net income to EUR 22.7m after minorities. Consequently, the company also raised the dividend payment to EUR 1.35 per share. This is a yield of 2.3%... After divesting the DVD line business, the company posted record margins in the traditional vacuum pump business. The outlook given for 2006 is reflected in the current estimates. Both the top and bottom line should increase by 6-8%"... |
||||
| 24.03.2006 | Bankhaus Metzler | Markus Turnwald | Buy | Details |
| Upward revision of earnings and price target to EUR 56 per share due to the positive outlook for FY 2006 from the management... Dividend of EUR 1.35 per share higher than our expectation of EUR 1.30 Net cash position of EUR 65 m will according to the company be used to strengthen the core business via acquisition"... |
||||
| 24.03.2006 | Equinet | Sven Kürten | Accumulate | Details |
| ..."The facts: News from the analyst meeting ? price target raised Our analysis: We attended yesterdays analyst meeting with the following focal points: Parts of BOC Edwards an issue: As a result of the planned BOC takeover Linde already signalled that parts of BOC Edwards are available for sale. Pfeiffer Management yesterday clearly said that those parts could be a potential acquisition target, but that they are currently not in talks"... "Raised estimates and target price: Due to the organic revenue growth guidance of 6-8% which was ahead of our estimate of 5% we increased our revenue and earnings forecast to EUR 171m (EUR 168m) and EUR 2.86 per share (EUR 2.80 per share). For 2007 we now anticipate revenues of EUR 181m (EUR 176m) and EUR 3.10 (3.01 per share). Based on our new estimates we arrive at a fair value of EUR 57 per share. Reported 2006 results could be somewhat higher since Pfeiffer currently is in talks about a smaller acquisition (not related to BOC Edwards) in the EUR 10m revenue range"... |
||||
| 23.03.2006 | Deutsche Bank | Benjamin Kohnke | Buy | Details |
| "Outlook confirms our investment case Solid operating business paired with scope for acquisitions Pfeiffer Vacuum remains upbeat on the business development going forward... Smaller acquisition ahead and a number of potential targets in sight PV will propose a dividend of Euro 1.35 to the AGM, which was significantly ahead of our Euro 1.0 estimate. Despite the high payout, the company stated to be in close negotiations with a potential acquisition target in Europe; the transaction might close within the next six months and add approx. Euro 40m in sales. Pfeiffer also stated to be able to spend approx. Euro 200m on external growth and uttered interest in the vacuum unit of BOC Edwards, if it should be up for sale at attractive conditions. Hence our investment case that Pfeiffer will be able to create additional shareholder value through a more efficient balance sheet remains intact... Valuation remains very attractive We value Pfeiffer on a DCF basis (WACC 6.8%, g=1.5%), which yields a fair equity value of Euro 60 per share = 17% upside potential to yesterday´s closing price. Overpayment for acquisitions and increasing competition constitute the biggest risk to our investment case"... |
||||
| 23.03.2006 | Fairesearch | Heinz Steffen | Hold | Details |
| "Wait for the next move Revenues increased 5.6% and EBIT 6.3% to EUR 36.8m In 2005 adjusted revenues (excluding DVD business) increased 5.6% to EUR 159.5m. EBIT margin improved from 22.8% to 23.1%... Revenues of turbo pumps increased 8.3% to EUR 64.4m. Turbo pumps which are mainly used in R&D and the pharmaceutical industry are the most profitable products of PV. Revenues of fore pumps increased 15.4% to EUR 22.8m. This product line is expanding and PV might have an interest in the fore pumps business division of BOC Edwards, the company which Linde has acquired. We do not expect fore pumps to be of any strategic value for Linde. Therefore this division will be sold. The unit would perfectly fit to PV... Dividend increase of 50% to EUR 1.35 Due to the strong performance management increased the dividend from EUR 0.90 per share 50% to EUR 1.35. In 2005 net income increased 95.7% to EUR 22.7m and EPS increased 95.5% from EUR 1.34 to EUR 2.62... We leave our ?HOLD? recommendation and target price of EUR 50 unchanged. Management is expecting revenues and EBIT to grow between 6% and 8% in the current year"... |
||||
| 23.03.2006 | West LB | Wolfgang Fickus | Upgrade from Hold to Add | Details |
| "Price target 61 Euro Strong dividend - solid outlook - good acquisition opportunity Pfeiffer Vacuum Q4 05 results were in line with the preliminary results already announced. The operating cash flow of EUR 6.8m in Q4 05 was strong. On the back of the strong free cash flow generation of EUR 22m and the strong net cash position of EUR 63.2m Pfeiffer Vacuum announced a surprisingly strong EUR 1.35 dividend per share vs a EUR 1 expectation by the market (JCF consensus) and our own estimate of EUR 0.80... The outlook of Pfeiffer is good. Pfeiffer expects organic growth of 6% to 8% with corresponding EBIT- growth. Interestingly Pfeiffer also saiys it wants to 'strengthen the company by strategic acquisitions'. One interesting target for Pfeiffer Vacuum is certainlty the vacuum pump business of BOC-Edwards, a competitor in Pfeiffer's turbopump business, which will certainly be for sale following the acquisition of BOC by Linde... Following the results we upgrade our estimates by 7% in FY06 and 13% in FY07 as we see Pfeiffer Vacuum increasingly strong positioned in the analytical market and given that we see continued market extension in industrial applications"... |
||||
| 20.02.2006 | Berenberg-Bank | Sven-Erik Hintz | Buy, Stock of the week | Details |
| Stock of the week, adj. est./PT rolled over to 2007 Quality: Pfeiffer Vacuum's competitive strength looks impressive, with a global market leadership (30% share) in the stable oligopoly for turbomolecular pumps. Differentiation is based on high product quality - turbo pumps rotate with up to 90,000 rpm, evacuating up to 2,400 litres per second, placing high requirements on material competences and bearings, which backs the defensibility of Peiffer's business model - and a global service network that helps customers achieve low total cost of ownership. Products are used to generate (pumps, 52% of sales), measure and analyse vacuum (analytical instruments and components, 24%). Service accounts for 15% of sales and 9% are due to complete vacuum systems e.g. leakage detection systems. That said, a slight weakness in focus cannot be ruled out given Pfeiffer's broad variety of target markets and the recent unsuccessful attempt to enter the DVD line business... Valuation: The lack of visibility has vanished due to the DVD line disposal. hus, valuation rests on high business quality with consistently high returns and sound growth prospects. CFRoEV2007 values the company at EUR 57 while DCF points to EUR 56. BUY with a price target of EUR 57 after rolling valuation to 2007... |
||||
| 16.02.2006 | Deutsche Bank | Benjamin Kohnke | Buy | Details |
| Top-line growth + financial leverage = value Pfeiffer's preliminary numbers reaffirmed our view that top-line growth is poised to pick up in FY06, which should trigger further margin expansions above 24%. On our revised forecasts, we derive a fair value of Euro 54 per share. Our analysis reveals that leveraged M&A activity could add Euro 6 per share in shareholder value, which we now incorporate in our DCF analysis - as we believe that the likelihood of corporate action is sufficiently high. Our new TP yields 22% upside potential to yesterday's closing price... Shareholder value creation through leveraged M&A activity Pfeiffer Vacuum runs a highly inefficient balance sheet structure, given an estimated Euro 80m of cash at the end of FY05, no debt and an average FCF generation of Euro 18.5m from FY1998-05E. We calculate that Pfeiffer Vacuum would have to take on approx. Euro 100m in debt to acquire a company of the size and with the product portfolio that management had indicated in the past... Likelihood of an acquisition has increased Unlike previous years, today?s publication of preliminary results did not include any guidance for a dividend proposal. Moreover, in Nov ?05, Pfeiffer stated that the company hired consultants to actively screen the market for potential takeover targets. Hence, we believe the likelihood that excess cash will be spent on acquisitions rather than the payout of a bonus dividend is high... Revised DCF yields fair value of Euro 60 per share We continue to value Pfeiffer Vacuum on a DCF basis. As a result of the positive leverage effects (WACC decrease to 6.8% from 7.6%) and EBIT contribution from M&A targets, we upgrade our TP to Euro 60 from Euro 50. Biggest risks to our investment case include potential overpayment for acquisitions, increasing competition in the core business as well as lackluster demand in Europe... |
||||
| 16.02.2006 | AC Research | Henning Wagner | Accumulate | Details |
| - | ||||
| 15.02.2006 | Equinet | Sven Kürten | Accumulate | Details |
| Good Q4 - strong order intake in January Pfeiffer Vacuum released preliminary Q4 2005 key financials. Q4 results slightly better than expected: Revenues of EUR 41.9 marginally below our forecast of EUR 42.4 m, but EBIT of EUR 11 m ahead of our EUR 10.4 m forecast. EBIT-margin in Q4 was 26.3% vs. our estimate of 24.5%. Q4 order intake was EUR 40.7 m (+5% yoy) inline with our estimate of EUR 40.4 m... Although a detailed FY guidance was not released yet, company commented on January order intake: Order intake in January was increasing - the book-to-bill ratio was 1.02 - utilization rates were strong. All in all we regard this indication as positive... |
||||
| 15.02.2006 | Bankhaus Lampe | Roland Könen | Hold | Details |
| - | ||||
| 14.02.2006 | Fairesearch | Heinz Steffen | Hold | Details |
| Another record year expected Revenues will increase 4.6% with an EBIT margin of 22.1% We expect revenues to increase 4.6% to EUR 163.4m. EBIT will jump from EUR 18.08m in 2004 to EUR 36.12m. EBIT margin will reach 22.1% compared to 11.6% in 2004. The main reason for the strong performance was the closure of the loss-making DVD-business. In addition we expect management to improve operating performance further. However revenues from the optical data storage will decline in 2005 (fairesearch estimate) due to the difficult market environment. Demand for general vacuum processes should show healthy growth rates. Market drivers are the life science industry and increased R&D budgets mainly in the US-market... |
||||
| 09.02.2006 | Citigroup | Claus Roller | Upgrade from Hold to Buy | Details |
| Upgrade to BUY, increasing order momentum - Pfeiffer Vacuum will publish its preliminary results next Wednesday, February 15th. We believe that Pfeiffer can beat our top of the range forecast of EUR 37m. EBIT in 2005 or EUR 10m. in 4Q. We expect 4Q orders up 12% to EUR 43m. and an increased order backlog to EUR31m. which should bode well for 2006... - Our recent plant visit showed increased capacity utilisation which indicates that 4Q order momentum has accelerated. Its competitor BOC Edwards published a 60% increase in 4QDec orders on the back of strong demand from the semiconductor industry. After the decline in 2004, Pfeiffer's sales to the semi industry were relatively stable at 12% of total sales in 9months but well below its average cycle level. Thanks to its new products for general industry and its strong position in analytical industry, Pfeiffer is also well positioned to benefit from a general upturn in capex spending... - At the end of September 2005, Pfeiffer had EUR 63m. net cash which we estimate to have risen to EUR 70m. by the end of December. Pfeiffer management has indicated that it wants to use its capital efficiently, ie either pay an increased dividend or make an acquisition in related activities. We believe that Pfeiffer could raise its pay-out ratio from 40% in 2004 to 50% in 2005. However, we also see medium-term potential to acquire competitors such as Busch, Adixen or even parts of BOC Edwards... - After the 3Q results in November when we downgraded to Hold, the stock has significantly underperformed its peer group. We believe that this is not justified and therefore upgrade to Buy/Medium Risk raising our price target from EUR 46 to EUR 55 based on Peer multiples and our DCF... |
||||
| 23.01.2006 | HSBC | Thorsten Zimmermann | Neutral | Details |
| Highly profitable and cash rich Pfeiffer's basic investment case has remained unchanged for quite some time, namely investing in highly profitable growth companies that add free cash flow to an already solid balance sheet (net cash at 9M 2005: EUR 7.28 per share). We expect that all these points will remain valid in 2006. We expect top-line growth from three sources in 2006: the success of the US initiative, increasing semiconductor equipment demand and recurring strong industrial demand. Another major investment topic for 2006 will be how management uses any available cash. Management has stated that it will either pay out a special dividend or make an acquisition in the EUR 40-60m range (it is currently looking at possible targets). It expects to make a decision by end Q1 2006... For 2005, management guided for revenue of EUR 160m and an EBIT margin in the 22.5-23% range. The upper end of this range implies a Q4 EBIT margin of more than 24% - a figure unseen since Q4 2000. Both our estimates and consensus are based at the lower end of management's guidance and imply a Q4 EBIT margin of 23%, which we would still consider an extremely good result. With regard to 2006, our sales estimate is in line with consensus. We take the view that Pfeiffer should be able to defend its margins and slightly upgrade EBIT from EUR 37.3m to EUR 38.9m and EPS from EUR 0.79 to EUR 2.82. Additional margin expansion depends on the economic cycle and a strong US dollar. We take the view that 2006 estimates do not look stretched and should leave some upside potential... |
||||
Page functions
-
Recommend this page!
-
Social Networks:
