Deutz

The takeover of defense firm FFG catapults Deutz into new revenue and earnings dimensions and led to a price rise of more than 11%. Analysts raised fair value to €16.00 and €16.40 and see about 40% upside. The acquisition (purchase price €1.6bn) will be financed with roughly €1bn in debt and ~€600m in new shares, implying higher interest costs and around 40% dilution, but—thanks to expected high EBIT margins—could lift earnings per share next year to €1.20–1.30. Deutz’s prior operational strength and strong order intake support the view that medium-term targets could be reached earlier or exceeded. » Plus sur finanzen.net

The extraordinary general meeting of Deutz voted 99.7% in favor of the €1.6 billion takeover of Flensburger Fahrzeugbau Gesellschaft (FFG); the share price reacted with about +3%. Part of the purchase price is to be paid in new Deutz shares, which could leave FFG’s owners with up to 29.9% and make them anchor shareholders. FFG, according to CEO Sebastian Schulte, already expects revenue of more than €1 billion in 2027 with margins above 20%; the Bundeskartellamt has already approved the deal. Analysts continue to warn of integration and share-price risks; closing and a possible adjustment of guidance are still pending. » Plus sur de.investing.com

DEUTZ shares rose on Tuesday by as much as about 9.5% to €11.33, the highest level since early May, after the takeover of Flensburger Fahrzeugbau Gesellschaft (FFG) was approved at an extraordinary general meeting. Kepler Cheuvreux raises its price target to €16 and sees high synergy and growth potential, while Oddo BHF, at €16.40, expects DEUTZ could reach its mid-term targets sooner. Both analysts base their positive assessments on the strengthening of the defence business through the acquisition. » Plus sur finanzen.net