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 07 Feb 2023.

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 by CIC.
  3. CIC (Crédit Industriel et Commercial) and M.M. Warburg & CO have concluded a Research Distribution Agreement that gives CIC Market Solutions exclusive distribution in France, the US and Canada of the Warburg Research GmbH research product.
  4. The research reports are distributed in the United States of America by CIC ("CIC") pursuant to a SEC Rule 15a-6 agreement with CIC Market Solutions Inc ("CICI"), a U.S. registered broker-dealer and a related company of CIC, and are distributed solely to persons who qualify as "Major U.S. Institutional Investors" as defined in SEC Rule 15a-6 under the Securities and Exchange Act of 1934.
  5. Any person who is not a Major U.S. Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein.


DISCLOSURE ACCORDING TO § 85 OF THE GERMAN SECURITIES TRADING ACT (WHPG), MAR and MiFID II INCL. COMMISSION DELEGATED REGULATIONS (EU) 2016/958 and (EU) 2017/565

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.

Warburg ESG Risk-Score

The Warburg Risk Score consists of three components, the ESG score (MSCI-based), balance sheet quality and market liquidity and extends the fundamental company analysis by including qualitative risk components. Our approach does not evaluate the ESG-quality of a company but considers ESG-criteria as a potential source of risk, which can affect the company value. We are not applying an ESG strategy, making any ESG-based exclusion (top-down approach) or deriving investment recommendations from ESG data but include those in the bottom-up company analysis.

Methodology: For each of the three components of the Warburg ESG Risk Score (ESG, balance sheet and liquidity), we calculate a single score based on a defined matrix on a scale of 0 (min) to 5 (max). The Warburg ESG Risk Score is derived as the equally-weighted average of the three single scores and therefore also ranges between 0 (min) and 5 (max). For the calculation of the single scores the following data are used:

  1. ESG-score: The ESG-score is derived from MSCI data and is based on the ESG-rating of the respective company. If no ESG-rating is available, we use the BISR-report for the scoring ("Business involvement screening research").
  2. Balance sheet quality: The balance sheet quality is calculated on the basis of net debt and net debt / EBITDA from the last reported year and the first year estimated. For the sectors financials, real estate and renewables, we apply an adjusted scoring matrix to account for sector-specific characteristics.
  3. Liquidity-score: The liquidity score is based on the addressable average trading volume (in EUR) of the last 30 days on the company´s domestic stock market.

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.

WARBURG RESEARCH GMBH - ANALYSED RESEARCH UNIVERSE BY RATING
Rating Number of stocks % of universe
Buy 158 76%
Hold 42 20%
Sell 5 2%
Rating suspended 3 1%
Total 208


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 43 86%
Hold 6 12%
Sell 0 0%
Rating suspended 1 2%
Total 50

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 AG
7C Solarparken AG
aap Implantate AG
Aareal Bank AG
Accentro Real Estate AG
adesso AG
Adidas AG
ADVA Optical Networking SE
AIXTRON SE
Allane SE
Allgeier SE
ALSO Holding AG
Alzchem Group AG
Amadeus FiRe AG
ANDRITZ AG
APONTIS PHARMA AG
Aroundtown SA
ATOSS Software AG
Aurubis AG
BASF SE
Basler AG
Bastei Lübbe AG
BAUER AG
Bayerische Motoren Werke AG
BayWa AG
Bechtle AG
Beiersdorf AG
Bertrandt AG
Blue Cap AG
BRAIN Biotech AG
Brenntag SE
Brockhaus Technologies AG
CANCOM SE
Ceconomy AG
CENIT AG
CEWE Stiftung & Co. KGaA
Cherry AG
Clearvise AG
Cliq Digital AG
Commerzbank AG
CompuGroup Medical SE & Co. KGaA
Continental AG
Data Modul AG
DATAGROUP SE
DEFAMA Deutsche Fachmarkt AG
Deutsche Bank AG
Deutsche Beteiligungs AG
Deutsche Börse AG
Deutsche EuroShop AG
Deutsche Konsum REIT-AG
Deutsche Post AG
Deutsche Wohnen SE
DEUTZ AG
DIC Asset AG
Dr. Hönle AG
Drägerwerk AG
Dürr AG
ecotel communication ag
EDAG Engineering Group AG
Einhell Germany AG
ELMOS Semiconductor AG
ElringKlinger AG
elumeo SE
Encavis AG
Energiekontor AG
EQS Group AG
Ernst Russ AG
Eurokai KGaA
Evonik Industries AG
EVOTEC SE
Exasol AG
Fabasoft AG
Fielmann AG
flatexDEGIRO AG
Francotyp-Postalia Holding AG
Fraport AG
freenet AG
Fresenius Medical Care AG & Co. KGaA
Fresenius SE
Fuchs Petrolub SE
GEA Group AG
GFT Technologies SE
GK Software SE
Grammer AG
GRENKE AG
HAEMATO AG
Hamborner REIT AG
Hapag-Lloyd AG
Hawesko Holding
Heidelberger Druck AG
Heliad Equity Partners GmbH & Co. KGaA
HELLA GmbH & Co. KGaA
HELMA Eigenheimbau AG
Henkel AG
HENSOLDT AG
hGears AG
HHLA AG
Hornbach Holding AG & Co. KGaA
Hugo Boss AG
Hypoport SE
INDUS Holding
Infineon Technologies AG
init innovation in traffic systems SE
Instone Real Estate Group SE
InVision AG
Jenoptik AG
JOST Werke AG
Jungheinrich AG
K+S AG
KATEK SE
KION Group
Klöckner & Co SE
Knorr-Bremse AG
Koenig & Bauer AG
Kontron AG
KPS AG
Krones AG
KSB SE & Co. KGaA
KWS SAAT AG
Lanxess AG
LEG Immobilien AG
LEONI AG
Linus Digital Finance AG
LPKF Laser & Electronics AG
M1 Kliniken AG
MAX Automation SE
Media and Games Invest SE
Medios AG
Mercedes-Benz Group AG
METRO AG
MPC Münchmeyer Petersen Capital AG
MTU Aero Engines AG
Muehlhan AG
Multitude SE
Mutares SE & Co. KGaA
Nagarro SE
Nemetschek AG
New Work SE
NEXUS AG
Nordex SE
NORMA Group AG
PATRIZIA SE
Peach Property Group AG
pferdewetten.de AG
PNE AG
POLYTEC Holding AG
PORR AG
Porsche Automobil Holding SE
ProCredit Holding AG & Co. KGaA
ProSiebenSat.1 Media SE
Puma SE
q.beyond AG
QIAGEN N.V.
Rational AG
Rheinmetall AG
Ringmetall SE
RTL Group S.A.
SAF-Holland SE
SAP SE
Sartorius AG
Schaeffler AG
Scout24 AG
secunet Security Networks AG
SFC Energy AG
Shop Apotheke Europe NV
Singulus Technologies AG
Sino AG
Sixt SE
Sixt SE Pref.
Smartbroker Holding AG
SNP Schneider-Neureither & Partner SE
Softing AG
Software AG
Stabilus S.A.
STEICO SE
STEMMER IMAGING AG
STRATEC SE
Ströer SE & Co. KGaA
Symrise AG
Südzucker AG
SÜSS MicroTec SE
TAG Immobilien AG
Takkt AG
Talanx Aktiengesellschaft
TeamViewer AG
technotrans AG
Telefónica Deutschland Holding AG
The Social Chain AG
Tion Renewables AG
tonies SE
TRATON SE
UBM Development AG
United Internet AG
VARTA AG
Vectron Systems AG
Veganz Group AG
VIB Vermögen AG
Vita 34 AG
Vitesco Technologies Group AG
Volkswagen AG
Vonovia SE
Vossloh AG
Wacker Chemie AG
Wacker Neuson SE
WashTec
Your Family Entertainment AG
Zalando SE
ZEAL Network SE
Zur Rose Group AG