Analysts Research Reports- Archive 2007
|"Topic: Whilst Pfeiffer is bound to expect a strong Q4 and very likely also a good H1
2008 due to the systems orders by Q-Cells, the weak US$ coupled with a weak Yen is
expected to take away some of the positive momentum in 2008.
Estimates on turbo pump and measurement items sales are taken down while backing pump sales and the systems division are still expected to contribute doubledigit growth. New PT is now EUR 72.50 (old PT: EUR 74)..."
|07.11.2007||MM Warburg||Eggert Kuls||Buy|
|"Q3 '07: strong operating cost rationalization results in significant EBIT margin expansion, despite no sales growth year-on-year...
Pfeiffer Vacuum recorded sales of EUR 45.9m (-0.7%) in Q3 '07. This decline was driven directly by Europe (excluding Germany) which saw sales drop by c. -8% y-o-y. Furthermore, Asia (and in specific, Japan) saw sales drop c. -10% y-o-y, in Q3 '07. Rather surprisingly, the U.S actually contributed to growth, c. +2% yoy (although a bulk of growth was clawed back due to translational currency losses). Germany was the only healthy region, posting a c. +10% y-o-y increase in sales in Q3 '07. In terms of product category, Pfeiffer's 'work-hors', the Turbopump, saw declines of c. 5% y-o-y, we suspect in the Europe (excluding Germany) and Japan regions. Similarly, the product segment of 'Measurement & analysis equipment' saw a year-on-year Q3 '07 decline of c. -15%. As the new Backingpump has been introduced recently, we expect it began to make a noticeable contribution to the Pfeiffer P&L. This was seen by a strong +44% increase Backingpump sales to EUR 8.6m in Q3 '07..."
|07.11.2007||BHF-Bank||Tobias Loskamp||Strong Buy||Details|
|"3Q07 results surprised positively with extremely strong profitability development that eliminated fears of broad downward earnings revisions as a result of suffering from a strong euro...
We upgrade our recommendation to Strong Buy (prev. Buy) and stick to our target price of EUR 78.00 as the upcoming quarters should show a strong performance...
Pfeiffer Vacuum's 3Q07 results clearly surprised in two ways. On the one hand, sales of EUR 46.0m lagged our estimate of EUR 48.5m as a result of an even stronger impact of the strong EUR. The US region perform quite well on a US$-basis but translation losses bring down YoY growth to only 2% in 3Q07. A more severe situation happened in Asia where YoY growth accelerated its decline to -15% as Asian competitors have competitive advantage that seems to let them gain market share..."
|"Lowering to Add after yesterday's gains
The Q3 conference call and a closer look at the figures support an overall positive picture. The remarkable jump in the EBIT margin was generated by efficiency gains and economies of scale. In addition, the company guides for a strong Q4. However, there are structural deficits in the sales development. We raise our forecasts and target price to EUR 71.1 from EUR 69.7. However, given yesterday's sharp gains we lower our rating to Add from Buy..."
|06.11.2007||Dresdner Bank||Yasmin Majewski||Buy||Details|
|"Results for Q3. Sales guidance lowered by 1.5% - but EBIT margin target increased
Mgt reduced sales guidance less than obviously expected by the market to a range of EUR 192-197m (initial guidance EUR 195-200m). Given an EBIT margin of 26.7% after 9M mgt even increased its EBIT margin and expects EBIT margin now significantly above the initial guidance of >25% ..."
|"Weak US-$ stopped revenue growth
Revenues -0.7%; EBIT margin 28.4%
In the third quarter 2007 ending September revenues declined marginally by 0.7% to EUR 46m (fairesearch estimate: EUR 49.5m). Grossmargin reached 50.5% compared to 48.9% in the third quarter 2006. EBIT margin improved from 24.7% to 28.4% (estimate: 26.1%). In the first nine months revenues increased 3.6% to EUR 136.7m and EBITDA improved 67.7% from EUR 23.2m to EUR 38.9m. EBITDA margin increased from 17.6% to 28.5% (estimate: 27.7%)..."
|06.11.2007||West LB||Sven Kürten||Add||Details|
|"Weak revenues, but strong profitability
Pfeiffer Vacuum reported a mixed set of Q3 results. The revenues of EUR 46m were clearly weaker than our forecast of EUR 49m and also below the dpa-afx consensus of EUR 47.6m. The management primarily blamed the weak dollar for this performance. However, the operating profit came in clearly ahead of expectations with an EBIT margin of 28.5% vs. our estimate of 25.3% and the dpa-afx consensus of 25.6%. A negative tax one-off ahead of the corporate tax reform burdened the net income, which therefore fell short of our expectations. Due to the lower Q3 revenues, the company slightly reduced its 2007 revenue forecast range to EUR 192m - EUR 195m down from EUR 195m - EUR 200m, but at the same time increased its profitability forecast. The management now expects an EBIT margin that is significantly better than 25% (old forecast was at least 25%). We are keeping our Add rating unchanged, but have put our target price under review..."
|06.11.2007||AC Research||Henning Wagener||Accumulate|
|06.11.2007||Commerzbank||Norbert Kretlow||upgrade from Hold to Buy||Details|
|"Q3 figures were a mixed bag with sales 1.5% below our forecast (2.5% below consensus) but EBIT 6.4% above our forecast (8.3% above consensus). The full year sales guidance was lowered to EUR 192-197m from EUR 195-200m. EBIT margin guidance was raised to 'clearly above 25%' from 'at least 25%'. In all we consider the figures positive and raise our rating to Buy from Hold..."|
|24.10.2007||Deutsche Bank||Benjamin Kohnke||Buy||Details|
|"Negative FX-impact does not change our investment case
Pfeiffer Vacuum (PV) shares recently came under pressure on the back of concerns about the negative impact from the Euro/US$ exchange rate development. We concede that the company's current top-line guidance of Euro 195-200m for FY07 might prove ambitious after Q3. However, we believe that hedging and strong cost containment should still lead to attractive financials. Our investment case of a high tech, quality engineering stock, offering a FCF yield of close to 8% remains intact. We re-iterate our Buy recommendation..."
|24.10.2007||Dresdner Bank||Y. Majewski||Buy||Details|
|"Based on the weak US$ and Yen, sales in US (approx. 25% of sales) in Japan (approx. 9% of sales) is much lower than anticipated in EUR terms. As we do not expect that Pfeiffer is able to off-set negative currency impact with volume sales, we view mgt sales guidance of EUR 295-200m of too ambitious. Based on lower revenues assumptions and slight reduction in EBIT margin estimates, we cut our EBIT and EPS estimates by on average 5%. Although imminent consensus estimate downgrades will bode ill for the shares in near term, we still view Pfeiffer (>25% EBIT margin, 8% FCF yield to EV, 4% dividend yield) as a very attractive investment opportunity. We keep our Buy rating. Our EUR 75 price target offers 25% upside..."|
|"Pfeiffer Vacuum reports Q3 '07E numbers on Tuesday, 6th of November.
Q3 '07E preview, moving recommendation to IN-LINE due to increased risks to growth and increased degree of market earnings expectation risk... We believe Pfeiffer Vacuum has had an admirable run amidst an industrial/capital goods-led Eurozone recovery in the last 3-4 years (both operationally and in terms of share price performance). While order intake continues to grow in Germany and Europe in high single-digit percentage territory (source: VDMA) at present, we do believe that the next 2-3 years in demand growth for Pfeiffer's products and Pfeiffer's efficiency in terms of abating raw material price rises and currency swings, across the world, is at risk. While U.S Dollar currency swings (vs. the Euro) have burdened Pfeiffer's topline growth in the last few years, we believe that the situation in Q3 may have worsened and compounded severely..."
|04.09.2007||DZ Bank||Harald Schnitzer||Buy||Details|
|"Target price EUR 80"|
|31.08.2007||Dresdner Kleinwort||Yasmin Majewski||Buy||Details|
Pfeiffer Vacuum Pfeiffer Vacuum Technology AG announces its decision to voluntarily delist its ADRs from NYSE, to terminate its ADR program and to deregister from its reporting obligations under the U.S. Securities Exchange Act to concentrate its trading volume at the Frankfurt Stock Exchange, which reduces complexity and therefore costs. However, we think cost reduction potential is only around EUR0.5m. No change to our estimates. We keep our DCF based price target of EUR80 unchanged..."
|13.08.2007||MM Warburg||Eggert Kuls||Upgrade from Hold to Buy||Details|
|"Target price EUR 78"|
|"Q2 slightly below expectations...
Operating Q2 figures came in slightly below both our own and market expectations. Order intake was strong, but benefited from a bulk solar industry order. Full year guidance was reiterated. On the whole, we rate Q2 as slightly negative and revise our forecasts and target price downwards accordingly. We reiterate our Hold rating...
Q2 slightly below expectations Sales and EBIT came in 4% below our forecast. Sales growth fell to 4.8% y-o-y, however, adjusted for exchange rate effects organic growth would have been c. 8.8% y-o-y. Net profit benefited from gains from the sale of securities (EUR2.3m)... Reducing target price On the whole we rate the Q2 figures slightly negative. Based on our new estimates, we lower our target price to EUR74.1 from EUR78.6 and, at this point in time, reiterate our Hold recommendation..."
|08.08.2007||Berenberg-Bank||Sven-Erik Hintz||Upgrade from Hold to Buy||Details|
|"Topic: Feedback from the conference call. All business units well on track. Second half to go much stronger than H1. Market leadership coupled with excellent financials, high returns, and promising product launches lead to an upgrade of rating to BUY after recent underperformance...
Top line estimates of EUR 202m for 2007 suggest a growth rate of 12.6%. After only 5.9% growth in H1 this suggests growth rates in H2 look set to accelerate to 17-20%. This scenario is highly likely with a book-to-bill of 1.25 in Q2 and 1.21 for the H1 2007...
Main driver of this growth should be a big order in the Systems division as well as continued high demand from the Analytical Industry as well as from Coating. Semi customers still play only a minor role...
With dividend payouts adjusted as well (now suggesting a dividend yield of 4%) and excellent profit drivers in H2, the company looks cheap again after the recent downturn. Hence, Pfeiffer is upgraded to BUY (from Hold) on unchanged PT of EUR 75.00 based on CFRoEV2008..."
|07.08.2007||MM Warburg||Eggert Kuls||Hold|
|- 2Q07 sales growth disappointed as strong order intake from 1Q07 is translating into revenue later than expected. Nevertheless, management sees no overall downturn...
- Booming demand for equipment from the solar industry pushed order intake to EUR55.2m (+35.4% YoY) and, most strongly, sales. This outweighs the weakness in the USA and Asia resulting from a strong Euro...
- We reiterate our Buy rating and see a fair value of EUR78.00 (prev. EUR79.00)...
Pfeiffer Vacuum's 2Q07 figures came in clearly below our estimates. Most importantly, the reported sales of EUR44.0m did not meet our expectations of EUR47.0m. This came as a surprise as order intake was enormously strong in 1Q07 but had not yet been reflected in 1Q07 sales. Management clarified that this is no capacity or delivery problem but customers appear to request delivery a bit later than usual. Moreover, as order intake remains solid, one cannot conclude that we see an overall downturn. In total, revenue in the USA and Asia was slightly down in 1H07. The main reason is the strength of the Euro that has a negative translation effect on US$-denominated revenues and thus puts Japanese competitors in a more competitive position in Asia. The strongest revenue driver, in our view, is the demand from the solar industry (reported in the coating segment). This demand rose more than 20% YoY and contributed 5% to total sales in 2Q07. Order intake of EUR55.2m (+35.4% YoY) came in at a record-high level but below expectations of EUR60m and includes the already-known large order from a Q-Cells subsidiary, amounting to a revised estimate of EUR12.0m (prev. EUR16m)...
Pfeiffer kept its FY07F guidance with a sales range of EUR190-200m and an EBIT margin above 25%. We have adjusted our estimates for the lower order intake and slightly better EBIT margins. Our DCF model points to a fair value of EUR78.00 and a Buy rating...
|07.08.2007||Dresdner Bank||Yasmin Majewski||Buy||Details|
|"Preview for Q2. We expect good results ahead
Driven by ongoing strong demand for its turbo pumps, we expect sales up almost 6% YoY to EUR44.3m. Strong demand in turbo pumps should be reflected in an over proportional EBIT increase of almost 12% YoY to EUR11.4m, i.e. EBIT margin to improve by 145bp. We forecast net income to improve by almost 13% YoY to EUR7.1m. We keep remain Buyers. Our DCF based price target of EUR80 represents almost 11% upside...
Despite the excellent share price performance, we expect good newsflow to persist over the coming quarters to support the stock and we keep our Buy recommendation. We recommend investors to use potential set-backs as perfect buying opportunity. Our price target of EUR80 offers almost 11% upside potential..."
|07.08.2007||Nord LB||Ansgar Rauch||Upgrade from Sell to Hold|
|07.08.2007||West LB||Sven Kürten||Add||Details|
|Q2 results: Good cost control, shift in orders to a new level?...
Although they disappointed us on the revenue level, Q2 results also had a few very positive aspects in our view. Firstly, the company had an impressive cost control in Sales & Marketing. Secondly, management indicated that it did not regard the high Q2 order levels driven by solar as a one-off, and thirdly the reiterated guidance indicates to us quite a strong H2 despite the current dollar weakness. We reiterate our Add rating and leave our target price of EUR78 unchanged...
Guidance implies strong H2, just minor model changes. The reiterated revenue guidance implies a revenue growth of 11-16% in H2, which is quite strong, particularly against the current dollar weakness, in our view. Against this backdrop a recovery of the dollar could have an additional significant positive impact on Pfeiffer's H2 results. For 2007 we have increased our EPS slightly from EUR3.80 to EUR3.94, which is exclusively based on the sale of financial assets in Q2. For 2008 we are leaving our estimates basically unchanged...
|13.06.2007||Dresdner Bank||Yasmin Majewski||Buy||Details|
|Following discussion with company, we slightly adjusted our estimates. While we left our sales assumptions unchanged, we increased our EBIT margin assumption by 92bp from 'only' 24.9%
to 25.8% assuming ongoing strong demand for its high margin turbo pump and as Pfeiffer already reported 26.2% EBIT margin in Q1-07.
We increased our DCF based price target from EUR 76 to EUR 80...
|Q1 figures are EUR 46.7m sales (+7 % y-o-y), EUR 12.2m EBIT (+14 % y-o-y) and EUR 8.0m net income (+23 % y-o-y) were slightly beating consensus ...
Very strong EBIT margin of 26.1 % is due to high share of high margin Turbopumps sales (46 % of sales). Extremely strong order intake of EUR54.7m (+21.3 % yoy) due to one large contract from solar industry. Additional orders are mainly for Turbopumps, which should have a positive effect on margin going forward...
Q1 figures were good in our view and form a solid base for 2007. Strong order intake figure of EUR 54.7m did not include an order in the double digit millions from Q-Cells that will be booked during Q2. Three tools will be delivered until end 2008 and sales will be booked under percentage of completion. The good news is that unlike the existing systems business which earns a low gross margin (c33 %), management stated that the solar business will not be margin dilutive. Management has toured the US and reports that demand is holding up well and that Pfeiffer is continuing to add new customers. At the analyst conference management stated that 2007 sales growth will be similar to 2006 (+12.5 %) - this however did not include the Q-Cells business. We conclude that 2007 consensus figures sales +11.4 % EBIT EUR 50.7m leaves room for upside...
|Strong 1Q07 results - upgrade to target price
Revenues driven by strong turbo-pump sales - After considerable revenue growth last year, revenues in 1Q07 increased by 7% YoY to EUR 46.7m, mainly driven by an increase in turbo-pump sales by 9% to EUR 21.4m...
Change in estimates and upgrade to target price - We increase our 07E EPS estimates by 10% for 07E and 8% for 08E. Based on our DCF calculation we upgrade our target price to EUR 83 and maintain our Hold/ Medium Risk (2M) rating...
|After collecting additional information on a bulk order received from the solar industry and reviewing Q1 figures we raise our 2008 earnings forecasts by some 9 %. We believe that sales from solar cell coating equipment will, however, remain only in single digits as percentage as of total sales. Our new target price is EUR 80.6. Our rating is Hold.|
|Target price EUR 80|
|Revenues only increased 7 %, but EBIT 14.2 %
Revenue increased lower than expected; EBIT margin 26.2 %
In the first quarter 2007 ending March revenues increased only 7 % from EUR 43.7m to EUR 46.7m (estimate 19.1 %to EUR 52m). In the first two months alone revenues increased 19.2 % to EUR 31.6m. In March revenues declined 12.2 % from EUR 17.2m to EUR 15.1m. According to our estimates this decline will not fundamentally change the growth opportunities of the company. Order intake in the first quarter increased 21.3 % to EUR 54.7m. In March alone order intake increased 18.1 %. The large order from Q-Cells will be booked in the second quarter...
Despite the weaker than expected revenue growth we leave our "BUY" recommendation and target price of EUR 90 per share unchanged...
|Closing price: EUR 76.17
1Q07 sales below our expectations, but excellent growth prospects for the remainder of the year...
Another record EBIT margin: 26.2 %...
We have increased our sales estimate by 3 % and increased our FY07F margin assumption to 25.4 %. Our DCF model points to a fair value of EUR 79.00. As a result of the recent share price development we cut our rating to Buy...
Pfeiffer Vacuum reported overall very solid results for 1Q07. Though the company did not reach our estimates, it clearly beat consensus. Sales of EUR 46.7m was rather weak versus previous indications at the analyst conference on 29 March. While the depreciation of the US$ had an impact of EUR-1m on the top line, it appears that also March showed a quite poor performance YoY. Nevertheless, the 1Q07 book-to-bill ratio of 1.17 proves strong order intake momentum and good growth prospects for 2Q07F. Moreover, Pfeiffer Vacuum recently reported a large order from a subsidiary of Q-Cells which should lead to an additional growth momentum in 2H07F...
|Pfeiffer Vacuum has released Q1 '07 results, 11 % above our expectations on the net group profit level. After having spoken to the management briefly, we believe these numbers were also ahead of consensus estimates, albeit by between 2-3 %. We also find it noteworthy that Pfeiffer Vacuum has reached an EBIT margin of 26.1 % for the first time (the Turbopump has also accounted for around 46 % of turnover for the first time)...|
|03.05.2007||Nord LB||Ansgar Rauch||Sell|
|03.05.2007||Commerzbank||Norbert Kretlow||Under Review||Details|
|Current price EUR 76.15, Target price under review
Pfeiffer Vacuum has released Q1 figures. Sales came in 0.8 % below our forecast (3.5 % below consensus). EBIT was 2.1 % above our forecast and 1.7 % above consensus. Sales were up 7.0 % y-o-y. We believe Pfeiffer's guidance (sales growth at 2006 levels of 12.5 %) can still be reached. Its quarterly sales tend to be volatile, so we do not expect significant disappointment in the market. We plan to adjust our forecasts as they do not yet account for a bulk order from Q-Cells...
|03.05.2007||AC Research||Henning Wagener||Hold|
|03.05.2007||Dresdner Bank||Yasmin Majewski||Buy||Details|
|Results for Q1. Bottom-line better than expected
Sales were up 7 % YoY to EUR 46.7m, driven by strong demand for turbo pumps (46 % of total sales). Based on favourable product mix Pfeiffer's gross margin reached 49.9 %. EBIT increased by 14 % to EUR 12.2m (EBIT margin of 26.2 %, up 166 bp). Net income of EUR 8.0m was up 23 %. Op CF increased by 36 % to EUR 7.2m. Order intake increased by 21 % to EUR 54.7m, representing a book/bill of 1.2...
|Excellent results expected in Q1'07
Revenues will increase 19.1 %; EBIT margin will reach 26.3 %...
In the first quarter 2007 ending March we expect revenues to increase 19.1 % from EUR 43.7m to EUR 52m. In the first two months alone revenues increased 19.2 % to EUR 31.6m and order intake 23.2 % to EUR 34.5m. Gross profit will improve 19.7 % to EUR 26.4m and gross margin will increase from 50.5 % to 50.8 %. We expect EBIT to increase 30 % to EUR 13.7m. EBIT margin will improve from 24.1 % to 26.3 %. We expect net income to increase 35.3 % to EUR 8.7m and EPS should reach EUR 1.00 compared to EUR 0.74 in the first quarter 2006...
|Current price EUR 73.82, Target price EUR 75.2
Pfeiffer Vacuum is due to report Q1 figures on 3 May. We expect sales to be up 7.9 % y-o-y and forecast an EBIT of EUR 12.0m (up 13.4 % y-o-y). With sales up 19.2 % y-o-y in Jan./Feb. 2007, our forecast implies slower growth in March. Given a favourable market environment and expectations for strong oder intake of EUR 53.5 (up 18.6 % y-o-y) in Q1 we feel confident in our full year forecasts. However, given the recent share performance we downgrade our recommendation to Hold from Buy...
|Further improvement from already high level
We have been too cautious and raise our 2007 EPS by 3.4% and 2008 by 14.8% on the back of favourable business sentiment and new product launches...
We expect Q1 to exhibit the seasonal q-o-q drop in sales but order intake should support 2007 targets...
We raise our target price of EUR 75.5 up from EUR 64 and upgrade our rating to Neutral from Underweight...
|16.04.2007||Bankhaus Lampe||Roland Könen||Hold||Details|
|Target price increased to EUR 75|
|FY '06: Pfeiffer's strongest year yet; company returns more cash than expected; nevertheless no material change to estimates
Pfeiffer Vacuum recorded sales of EUR 179.5m (+13 %) in FY '06. This strong level of growth was about 80 % higher than expected by management at the beginning of the year. In terms of demand by region (on a weighted basis), Germany (EUR 50.9m, +13.4 %) and the United States (EUR 41.3m, +14.7 %) drove topline growth in FY '06. While Asian demand increased significantly to EUR 31.2m (+20.5 %), this was from a lower base. We estimate that close to 70 % of the group topline growth, year-on-year, was driven primarily by the selling of the premium-price Turbopump (EUR 78.3m, +21.6 %). By end-industry, the two primary drivers of growth were the 'Industrial' (EUR 44.6m, +18.9 %) and 'R&D' (EUR 37.5m, +21.7 %) segments...
As for profitability, Pfeiffer Vacuum benefited significantly from containing raw material prices (with cost of sales rising under-proportionally to sales in percentage terms) and strong product mix improvements (by the higher average selling price Turbopumps accounting for 43.6 % of revenues in 2006 vs. 40.4 % in 2005) and grew its gross profit margin to 48.8 % (47.4 %). We feel this is significant and highlights how vital product mix improvements are and how they should continue for the group, going forward. Although SG&A and other operating expenses were impacted by higher audit costs, these grew under-proportionally to sales resulting in over-proportional EBIT growth to EUR 45.0m (+23.6 %). As a result EBIT margins expanded significantly to EUR 25.1 % (22.8 %)...
|30.03.2007||West LB||Sven Kürten||Add||Details|
|Target price increased to 78 Euro|
|30.03.2007||BHF-Bank||Tobias Loskamp||Strong Buy||Details|
|- FY06 results were boosted by one-offs but were ahead of our estimates even when excluding those figures.
- Dividend level was significantly lifted to 3.9 % or 75 % of net income (prev. 50 %).
- We have increased our FY07F growth estimate and margin target due to an excellent Jan/Feb business. Our DCF model points to a new target price of EUR 76.00. We upgrade our recommendation to Strong Buy...
PFV presented excellent final FY06 figures. Preliminary sales were confirmed and EBIT came in higher than previously indicated at EUR 45m (25.1 % EBIT margin) due to a lower pension valuation. Net income before minorities was EUR 29.8m (vs. BHF-BANK estimate of ?28.0m) leading to EPS of EUR 3.39 (vs. BHF-BANK estimate of EUR 3.17) and was clearly ahead of our estimates. Main reason for the deviation is a 2.3 % drop in the tax rate that was primarily a one-off tax benefit (to the extent of EUR 1.1m)...
Furthermore, the company announced to pay a dividend of EUR 2.50 equalling a dividend yield of 3.9 %. This is a significant increase compared to the last few years. While we expected an extra dividend that would have led to a one-time higher dividend, we appreciate the step of paying a dividend at a generally higher level as long as the company does not need its cash for acquisitions...
|After attending Pfeiffer Vacuum's analyst meeting and talking to the senior management, we believe the market environment in vacuum products is even stronger than we anticipated. We raise our forecasts (sales 2007 up 1.8 %; EBIT 2007 up 3.9 %) and increase our DCF based target price to EUR 75.2 from EUR 72.7. We reiterate our Buy recommendation...|
|29.03.2007||DZ Bank||Harald Schnitzler||Buy||Details|
|Fair value raised from 62 to 80 euros.|
|29.03.2007||Dresdner Kleinwort||Yasmin Majewski||Buy||Details|
|Results for FY. Cash is king - record dividend of EUR 2.5 is a clear positive
Sales increased by 12.5 % to EUR 179.5m, EBIT clearly outpaced sales growth with an increase of 22.3 % YoY to EUR 45m, i.e. EBIT margin improved by 200bp to 25.1 % above initial mgt guidance of 23 %. Net income increased by 31.2 % to EUR 29.8m mainly driven by favourable tax rate. Clear positive surprise is dividend of EUR 2.5 for 2006, i.e. a dividend yield of almost 4 %. Buy...
Sales increased by 12.5 % significantly above industry growth of 4 %, mainly driven by a strong demand for its turbo pumps...
Net cash increased to EUR 75.4m ahead of our estimates of EUR 62m. Given its high cash position mgt reacted on investors' critics about low dividend yield and increased dividend for 2006 significantly by 85 % YoY...
|Cash as cash can
Pfeiffer Vacuum has a strong position in the niche market of vacuum products. We expect market growth in 2007, and a new product from 2008, to lead to a sales CAGR 2006-09E of 7.3 % with stable margins. We reinitiate coverage with a target price of EUR 72.7 and a Buy rating. We believe market pressure to optimise the balance sheet structure might increase...
|14.03.2007||Dresdner Kleinwort||Yasmin Majewski||Buy||Details|
|Initiation of coverage with Buy and EUR 74.3 PT (almost 23 % upside) - You get what you pay for - high quality has its price
Pfeiffer Vacuum shares underperformed the MDAX by 8 % over the last three months. We see the recent share price weakness as a perfect opportunity to take a closer look at the company. In our view Pfeiffer Vacuum is a rare pearl in the German Mid/Small Cap universe as it ticks most of the boxes for investors in Mid/Small Cap companies:...
In a nutshell, Pfeiffer Vacuum is a perfect example of the adage "you get what you pay for" and recent underperformance does not reflect the high quality of the company. We initiate our coverage with a Buy recommendation. Our price target of EUR 74.3 renders an upside potential of almost 23%...
|05.03.2007||West LB||Sven Kürten||Accumulate|
|More colour on internal growth targets, new margin-enhancing products and general underlying market correction result in strong buying opportunity...
We obtained positive news flow and more colour on internal growth targets and new products (eg. Backingpump and Turbopump) in our conference call with Pfeiffer Vacuum management yesterday. We list below, the new pieces of news that have emerged and argue each in detail...
Valuation on Cazenove estimates shows Pfeiffer Vacuum as a strong buying opportunity Pfeiffer trades on 16.9x 07E and 15.4x 08E on a PER basis. When compared to our mixed-peer group of European, small-midcap high-margin industrialists, these multiples represent a discount of 8% and 6% in both years respectively. Were management to achieve their internal growth targets, the discounts would widen to 11% in both years. On an EV/EBITDA basis, Pfeiffer Vacuum trades on 8.3x 07E and 7.5x 08E representing an in-line valuation when compared to the above mentioned peer group. Our DCF indicated fair value, based on a terminal growth rate of 1.5% and a WACC of 8% is EUR 70 (+17%, prev. val: EUR 54 (21/08/06), change caused by +8% and +11% EPS upgrades for 07E and 08E on the back of better than expected Q3 06 results on 8th Nov 2006, a revised outlook on the back conference call with management on Tuesday and the rolling forward of another year in the DCF horizon). We maintain our OUTPERFORM rating...
|12.02.2007||Deutsche Bank||Benjamin Kohnke||Buy||Details|
|Incorporating our revised financial estimates as well as some changes to our WACC assumption, we derive a fair value of Euro 77 per share on our leveraged model, which we set as our new target price - providing approx. 14% upside to Friday's closing price of Euro 67.50...|
|The ongoing success story
Revenues increased 13.3% and EBIT 17.2%...
In the fourth quarter ending December revenues increased 13.3% to EUR 47.5m and gross margin reached 46.4%. EBIT increased 17.2% to EUR 12.1m and EBIT margin improved from 24.7% to 25.5%. Revenues and earnings were mainly driven by the successful product turbo pumps. Revenues of turbo pumps increased 24.4% to EUR 19.9m in the fourth quarter...
In 2006 revenues increased 12.5% to EUR 179.5m which is above the guidance ranging between EUR 175m and EUR 178m. EBIT increased 20.4% to EUR 44.3m and EBIT margin improved from 23.1% to 24.7% (guidance: EBIT margin will be above 24%). The product turbo pumps mainly contributed to the strong performance in 2006. Revenues of turbo pumps increased 21.6% from EUR 64.4m to EUR 78.3m and total revenue share increased from 40% to nearly 44%...
We changed our BUY recommendation to HOLD and increased our target price from EUR 61 to EUR 72 per share...
|06.02.2007||AC Research||Henning Wagener||Hold|
|Pfeiffer Vacuum again surprised positively with better-than-expected preliminary FY06 figures.
Order intake in January 07 clearly better than sequentially as well as YoY.
Based on increased growth and margin estimates we lift our target price to EUR 74.00 (prev. EUR 60.00). This time, we also include the likely effects of the German corporate tax reform...
|06.02.2007||West LB||Sven Kürten||Add||Details|
|Strong Q4 - very encouraging order intake in January
|Pfeiffer Vacuum this morning released good preliminary (unaudited) FY '06 numbers. The numbers as indicated below, were better than expected when compared to average consensus forecasts (dpa-afx) and our own...
While the topline came in largely inline with expectations (driven by a healthy development in the analytical, R&D and General industry end-markets), we feel the c. 30bp higher than expected EBIT margin of 24.7% was driven by a better than expected product mix. In detail, we understand that 44% (40% in 2005) of group sales were attributable to Turbopumps, which are the highest margin product in the group's repertoire. Continued control of operating costs also helped the EBIT margin. The group releases fully audited results on the 29th of March after which we will get back with more detail. As the EBIT margin and expansion thereof by management remain a key focus by the market, we feel the share might appreciate further today...
|Strong prel. FY 2006 numbers, est./PT up
Topic: Pfeiffer released prel. headline numbers for the FY 2006. Top- and bottom line slightly ahead of estimates. Good order intake up 7.9 % yoy to EUR 175.6m. Estimates and PT up to EUR 67.00 (old PT: EUR 66.00)...
Pfeiffer's top line for the FY 2006 came in at EUR 179.5m up 12.5% yoy due to continuously high demand for its core turbo pump product. Main driver for this development was a stable, but growing demand from the analytical industry and increased R&D spending from universities and scientific laboratories...
Gross profit, as a consequence of the favourable product mix shift towards high margin (minimum 55% gross margin) turbo pumps, was strong with est. EUR 88.8m and a 49.5% margin...
|06.02.2007||Nord LB||Ansgar Rauch||Sell|
|30.01.2007||Nord LB||Ansgar Rauch||Sell|
|09.01.2007||Roland Könen||Bankhaus Lampe||Hold|
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