Märkte & Kurse

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Original-Research: Schaeffler AG - from Quirin Privatbank
Kapitalmarktgeschäft

12.05.2025 / 13:55 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Schaeffler AG

     Company Name:               Schaeffler AG
     ISIN:                       DE000SHA0019

     Reason for the research:    Update
     Recommendation:             Buy
     from:                       12.05.2025
     Target price:               7.50
     Last rating change:
     Analyst:                    Daniel Kukalj, CIIA, CEFA

Attractive level to build up positions

After a solid start (Q1 2025: Sales flat qoq, but slightly lower yoy; adj.
EBIT margin at upper end of FY guidance) into the current financial year we
confirm our BUY rating with a slightly lowered price target of EUR 7.50
(7.60) based on our ROE/COE valuation approach, implying an upside potential
of more than 90%. In addition to the announced synergy potential of EUR 600m
p.a., realized 100% in 2029, as well as the performance enhancement program
with structural measures of EUR 215m p.a., and one-off synergy measures of
EUR 75m as part of the performance enhancement program, our focus is also on
the timing or the gradual approach of the E-Mob segment to the break-even
level, which in our view reflects a share price catalyst, currently the
market is likely to take a rather cautious view. We do not expect any major
news flow before/from the Q2 figures, the focus is clearly on the Capital
Markets Day in September, when we expect a new medium-term guidance until
2028 with detailed statements to bolster the equity story. Compared to the
selected peer companies, which are trading significantly higher, we see a
significant undervaluation of the Schaeffler share, thus some catch-up
potential. The current stock price offers an appealing entry point, and we
recommend investors take advantage of this opportunity. It should not be
forgotten that improved profitability will also result in an increased
dividend payout, as management raised the range for the annual dividend
payout ratio to 40-60% of net income adjusted for special items.


You can download the research here: http://www.more-ir.de/d/32562.pdf
For additional information visit our website:
https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/

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2135386 12.05.2025 CET/CEST

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