INDUS Holding AG Maintains "HOLD" Status Amid M&A Focus

NuWays AG has maintained a "HOLD" recommendation for INDUS Holding AG, setting a target price of EUR 41. The decision was influenced by recent developments at the company's annual Paris conference, where focus remained on tungsten management, growth drivers, and mergers & acquisitions (M&A). Despite challenges from a spike in tungsten carbide prices due to Chinese export controls, BETEK, a segment of INDUS, reported significant profit gains driven by pricing. Uncertainty looms around future tungsten prices, but INDUS remains strategically focused on expanding through M&A.

Engineering and Infrastructure segments of INDUS are expected to benefit from improved economic growth prospects in Europe, with an encouraging order intake in the first half of the year. Management anticipates at least one additional acquisition in the current fiscal year. Despite a 60% share price rally since July, concerns about valuation have led to the maintenance of the "HOLD" status. Future value enhancements could depend on further M&A activity, internal margin improvements, and a better macroeconomic landscape.