HAMBURG (dpa-AFX) - The analyst firm Warburg Research sees a number of attractive takeover targets in Germany. In particular, smaller and medium-sized borrower companies currently offer interesting entry opportunities for long-term investors, writes analyst Michael Heider in a study published on Monday. A possible interest rate cut by the European Central Bank, which is expected soon, would make companies with lower market capitalizations even more attractive. However, according to the expert, the DAX member Mercedes-Benz could also attract interested parties.

In addition to the valuation, Heider sees the cash position and suitability for a debt-financed takeover as investment criteria. The most important thing, however, is that the acquisition target is a strategic fit for the prospective buyer - otherwise even the favorable valuation is of no use to him. The focus is therefore on companies with attractive market positions, expertise in specific technologies or a regional leadership position. A company's desire to turn its back on the capital market can also play a role - for example, because investors do not reward a significant change in strategy.

These considerations resulted in a list of 38 companies for the Warburg expert, 12 of which he highlighted once again. The car manufacturer Mercedes-Benz is a strong brand in the sector and is represented in the premium segment with its products. In addition, there is the absence of large or state shareholders.

In the small cap index SDax, Heider sees Norma Group, Jost Werke, SAF-Holland and PNE as particularly attractive takeover targets. In the case of connection technology specialist Norma, he emphasizes the growing water management business. Commercial vehicle supplier Jost offers everything that is important to investors and its competitor SAF-Holland scores with improved profitability. In the case of wind power and photovoltaic project developer PNE, Heider is counting on the fact that major shareholder Morgan Stanley Infrastructure Partners (MSIP) was able to launch a second offer.

The Swiss online pharmacy DocMorris is also of interest. Its shares could be more attractive for a takeover than those of its MDax-listed competitor Redcare Pharmacy, which already has a strategic shareholder in Galenica.

Heider named the companies Bastei Lübbe, Clearvise, Edag Engineering, Francotyp-Postalia, New Work and Stemmer Imaging as opportunities outside the three major DAX indices./gl/tih/he

Publication of the original study: 27.05.2024 / 14:15 / CEST First dissemination of the original study: Date not specified in study / Time not specified in study / CEST