Disclaimer for Warburg Research publications
M.M.Warburg & CO

Note: On these pages you will find the Legal Disclaimer and the Statement according to Section 85 of the German Securities Trading Act and MAR (Market Abuse Regulation (EU) 596/2014) and MiFID II (Directive 2014/65/EU) for all investment recommendations published by the Warburg Research GmbH, a fully owned subsidiary of M.M.Warburg & CO (AG & Co.) KGaA, on all the companies currently on their coverage. You should be aware of the fact that all information on this and the following pages is regularly being updated, while any study and/or recommendation you might have before you has been completed on the date noted therein.

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These pages were last updated on 21 Mar 2018.

Legal Disclaimer

Research reports ("Investment Recommendations") prepared by the Warburg Research GmbH contain selected information and do not purport to be complete. The reports base on publicly available information and data ("Information") believed to be accurate and complete. Warburg Research GmbH neither do examine the Information to be accurate and complete, nor guarantee its accuracy and completeness. Possible errors or incompleteness of the Information do not constitute grounds for liability, neither with regard to indirect nor to direct or consequential damages. In particular, neither M.M.Warburg & CO (AG & Co.) KGaA nor the Warburg Research GmbH are liable for the statements, plans or other details contained in the Information concerning the examined companies, their associated companies, strategies, economic situations, market and competitive situations, regulatory environment, etc. Although due care has been taken in compiling the Investment Recommendation, it cannot be excluded that they are incomplete or contain errors. M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH, their shareholders and employees are not liable for the accuracy and completeness of the statements, estimations and the conclusions derived from the information contained in these investment recommendations. Provided any Investment Recommendation is being transmitted in connection with an existing contractual relationship, i.e. financial advisory or similar services, the liability of M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH shall be restricted to gross negligence and willful misconduct. Only in case of failure in essential tasks, M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH are liable for normal negligence. In any case, the liability of M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH is limited to typical, expectable damages and the liability for any indirect damages is excluded. Our Investment Recommendations do not constitute an offer or a solicitation of an offer for the purchase or sale of any security. Partners, directors or employees of M.M.Warburg & CO (AG & Co.) KGaA or Warburg Research GmbH may serve on the board of directors of companies mentioned in a report. Opinions expressed in a report are subject to change without notice. All rights reserved.

Additional information for clients in the United States

  1. All research reports ("Reports") are a product of Warburg Research GmbH, Germany, a fully owned subsidiary of M.M.Warburg & CO (AG & Co.) KGaA, Germany (in the following collectively "Warburg"). Warburg is the employer of the research analyst(s), who have prepared the Reports. The research analyst(s) reside outside the United States and are not associated persons of any U.S. regulated broker-dealer and therefore are not subject to the supervision of any U.S. regulated broker-dealer.
  2. The Reports are provided in the United States for distribution solely to "major U.S. institutional investors" under Rule 15a-6 of the U.S. Securities Exchange Act of 1934.
  3. Any recipient of a Report should effect transactions in the securities discussed in the Report only through J.P.P. Euro-Securities, Inc., Delaware.
  4. J.P.P. Euro-Securities, Inc. does not accept or receive any compensation of any kind for the dissemination of the research reports from Warburg.


The valuation underlying the Investment Recommendation for the company analysed here is based on generally accepted and widely used methods of fundamental analysis, such as e.g. DCF Model, Free Cash Flow Potential, Peer Group Comparison or Sum of the Parts Model. The result of this fundamental valuation is modified to take into consideration the analyst's assessment as regards the expected development of investor sentiment and its impact on the share price.

Independent of the applied valuation methods, there is the risk that the price target will not be met, for instance because of unforeseen changes in demand for the company's products, changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rate etc. For investments in foreign markets and instruments there are further risks, generally based on exchange rate changes or changes in political and social conditions.

This commentary reflects the opinion of the relevant author at the point in time of its compilation. A change in the fundamental factors underlying the valuation can mean that the valuation is subsequently no longer accurate. Whether, or in what time frame, an update of this commentary follows is not determined in advance.

Additional internal and organisational arrangements have been implemented to prevent or to deal with conflicts of interest. Among these are the spatial separation of Warburg Research GmbH from M.M.Warburg & CO (AG & Co.) KGaA and the creation of areas of confidentiality. This prevents the exchange of information, which could form the basis of conflicts of interest for Warburg Research in terms of the analysed issuers or their financial instruments.

The analysts of Warburg Research GmbH do not receive a gratuity - directly or indirectly - from the investment banking activities of M.M.Warburg & CO (AG & Co.) KGaA or of any company within the Warburg-Group.

All prices of financial instruments given in this Investment Recommendation are the closing prices on the last stock-market trading day before the publication date stated, unless another point in time is explicitly stated.

M.M.Warburg & CO (AG & Co.) KGaA and Warburg Research GmbH are subject to the supervision of the Federal Financial Supervisory Authority, BaFin. M.M.Warburg & CO (AG & Co.) KGaA is additionally subject to the supervision of the European Central Bank (ECB).

Valuation Methods

The fair value / price target of a share is primarily calculated using discounted cash flow methods. This may be supplemented by other valuation methods such as a peer-group comparison or a sum-of-the-parts-model. Where appropriate (e.g. banks, real estate companies), other methods such as regression model might be used as primary valuation model.

DCF: The DCF model uses future free cash flow projections and discounts them to arrive at their present value. Usually, the weigthed average cost of capital are used as discount rate to reflect the time value of money, risks of the cash flows as well as the corporates?s financing structure. A company?s enterprise value is derived by using the DCF analysis. The equity value results from the subtraction (addition) of the net debt (net cash) position.

FCF value: Warburg Research's valuation tool "FCF Value Potential" reflects the ability of the company to generate sustainable free cash flows. It is based on the "FCF potential" - a FCF "ex growth" figure. A value indication is derived via the perpetuity of a given year?s ?FCF potential? with consideration of the weighted costs of capital. The fluctuating value indications over time add a timing element to the DCF model (our preferred valuation tool).

Peer Group: The peer group comparison is a relative valuation approach and may be used to derive a company?s value. The peer group usually consists of other sufficiently comparable listed companies, transaction values of unlisted companies might also play a role. A peer group comparison might be based on sales, earnings (e.g. EBITDA, EBIT, EPS) or other (e.g. free cash flow, book-value, customers) measures.

Sum-of-the-parts: A sum-of-the-parts valuation yields the company?s enterprise value by summing of the value of individual assets. Here different valuation models are being used, where appropriate. The equity value is derived by subtraction of the net debt position.

Valuation Methods Banks

The fair value / price target of a share is primarily calculated using our regression model (PTB/ROE). This model may be supplemented by other valuation methods such as a peer-group comparison or a sum-of-the-parts-model.

Regression model: In order to calculate the Fair value of a bank we estimate bank?s book value and its profitability on a ROE basis. The calculated Price-to-book/ROE ratio is compared in a regression model with existing Peers to identify a fair value.

Investment Recommendation: expected direction of the share price development for equity security up to the given Target price in the opinion of the analyst who covers the issue.
B -  Buy: The price of the analysed equity security is expected to rise over the next 12 months.
H -  Hold: The price of the analysed equity security is expected to remain mostly flat over the next 12 months.
S -  Sell: The price of the analysed equity security is expected to fall over the next 12 months.
"-" -  Rating suspended: The available information does not currently permit an evaluation of the company.

Rating Number of stocks % of universe
Buy 111 54%
Hold 91 44%
Sell 5 2%
Rating suspended 0 0%
Total 207

WARBURG RESEARCH GMBH - ANALYSED RESEARCH UNIVERSE BY RATING taking into account only those companies which were provided with major investment services in the last twelve months.
Rating Number of stocks % of universe
Buy 31 74%
Hold 11 26%
Sell 0 0%
Rating suspended 0 0%
Total 42

Reference in accordance with section 85 of the German Securities Trading Act (WpHG) amd Art. 20 MAR regarding possible conflicts of interest with the analysed companies:

By clicking on a company name below, you may gather to what extent this is the case in regard to the companies that are part of the current research universe of Warburg Research GmbH.

Companies, for which specific disclosures according to sec. 85 German Securities Trading Act and Art. 20 MAR are available:

1&1 Drillisch AG
2G Energy AG
7C Solarparken AG
aap Implantate AG
Aareal Bank AG
adesso AG
Adidas AG
Adler Modemärkte AG
alstria office REIT-AG
Amadeus FiRe AG
Aroundtown SA
AS Création Tapeten AG
ATOSS Software AG
Aurubis AG
Axel Springer AG
B+S Banksysteme AG
Basler AG
Bastei Lübbe AG
Bayer AG
Bayerische Motoren Werke AG
BayWa AG
Bechtle AG
Beiersdorf AG
Bertrandt AG
bet-at-home.com AG
Bijou Brigitte AG
Blue Cap AG
Brenntag AG
Ceconomy AG
CENTROTEC Sustainable AG
CEWE Stiftung & Co. KGaA
Cliq Digital AG
comdirect AG
Commerzbank AG
CompuGroup Medical SE
Continental AG
CTS Eventim AG & Co. KGaA
Daimler AG
Data Modul AG
DEFAMA Deutsche Fachmarkt AG
Delticom AG
Deutsche Bank AG
Deutsche Beteiligungs AG
Deutsche Börse AG
Deutsche EuroShop AG
Deutsche Post AG
Deutsche Wohnen SE
Dr. Hönle AG
Drägerwerk AG
Dürr AG
Ecommerce Alliance plc
EDAG Engineering Group AG
Einhell Germany AG
ELMOS Semiconductor AG
ElringKlinger AG
elumeo SE
Encavis AG
Energiekontor AG
Eurokai KGaA
Evonik Industries AG
Fabasoft AG
Fielmann AG
FinTech Group AG
Francotyp-Postalia Holding AG
Fraport AG
freenet AG
Fresenius Medical Care AG & Co.
Fresenius SE
Fuchs Petrolub SE
GBK Beteiligungen AG
GEA Group AG
Gerry Weber International AG
GFT Technologies SE
GK Software AG
Grammer AG
GxP German Properties AG
Hapag-Lloyd AG
Hawesko Holding
Heidelberger Druck AG
HELMA Eigenheimbau AG
Henkel AG
HolidayCheck Group AG
Hornbach Holding AG & Co. KGaA
Hugo Boss AG
Hypoport AG
INDUS Holding
Infineon Technologies AG
innogy SE
InVision AG
Jenoptik AG
Jungheinrich AG
KION Group
Klöckner & Co SE
Koenig & Bauer AG
KROMI Logistik AG
Krones AG
Lanxess AG
LEG Immobilien AG
Linde AG
Lotto24 AG
Manz AG
MAX Automation SE
Medios AG
Merck KGaA
MeVis Medical Solutions AG
MPC Münchmeyer Petersen Capital AG
MTU Aero Engines AG
Muehlhan AG
MVV Energie AG
Nanogate AG
Nemetschek AG
Nordex SE
Osram Licht AG
PA Power Automation AG
Pantaflix AG
PATRIZIA Immobilien AG
Pfeiffer Vacuum AG
pferdewetten.de AG
Porsche Automobil Holding SE
ProSiebenSat.1 Media SE
Puma SE
Rational AG
Rheinmetall AG
Rhön-Klinikum AG
RIB Software AG
Rocket Internet SE
RTL Group S.A.
SAF-Holland S.A.
Salzgitter AG
Sartorius AG
Schaeffler AG
Scout24 AG
secunet Security Networks AG
Senvion S.A.
SFC Energy AG
SGL Group
Singulus Technologies AG
SinnerSchrader AG
Sixt Leasing SE
Sixt SE
SMA Solar Technology AG
Softing AG
Software AG
Stabilus S.A.
STADA Arzneimittel AG
STRATEC Biomedical
Ströer SE & Co. KGaA
Symrise AG
Südzucker AG
SÜSS MicroTec SE
TAG Immobilien AG
Takkt AG
Talanx Aktiengesellschaft
technotrans AG
Telefónica Deutschland Holding AG
thyssenkrupp AG
TLG Immobilien AG
United Internet AG
Vectron Systems AG
VIB Vermögen AG
Volkswagen AG
Vonovia SE
Vossloh AG
VTG Aktiengesellschaft
Wacker Chemie AG
Wacker Neuson SE
wallstreet:online AG
WCM Beteiligungs- und Grundbesitz-AG
Wirecard AG
Zalando SE
ZEAL Network SE
zooplus AG