Dr. Hönle AG Maintains Positive Outlook Amid Mixed Q3 Results

Dr. Hönle AG reported a challenging third quarter, leading to a revised annual guidance. The company experienced a 5.5% year-on-year drop in revenue, reaching €22.4 million. This downturn is largely attributed to weak performance in its adhesives division, notably impacted by the automotive sector's struggles and changes in Asian electronics supply chains.

However, the company noted stabilization in its curing operations and modest growth in disinfection, with restructuring and cost reduction efforts showing effects. EBITDA decreased to €0.5 million from €1.4 million last year. Financially, the net debt decreased to €42.7 million due to solid cash flow and property sales.

Despite current challenges, Dr. Hönle remains optimistic with a strategic focus on transformation and future sales targets of €175 million by 2030. The company maintains a "BUY" recommendation with a target price of €16, underpinned by discounted cash flow analysis.