Original-Research: Schaeffler AG (von Quirin Privatbank Kapitalmarktgeschäft...

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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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