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Original-Research: Deutz AG - from Quirin Privatbank Kapitalmarktgeschäft

03.09.2025 / 17:38 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 Deutz AG

Company Name: Deutz AG
ISIN: DE0006305006

Reason for the research: Update
Recommendation: Buy
from: 03.09.2025
Target price: 11.00
Last rating change:
Analyst: Klaus Soer

Acquisition of Sobek group to accelerate growth in defence unit

DEZ acquired Sobek group, an established drive specialist with focus on high
performance electric drive and hydraulic systems with current annual sales
of EUR 25-30m, an EBITDA margin of >30% and a strong growth potential
especially in the military industry with electrical drive components for
UAV's (drones). Sobek supplies critical components for the drone production
of leading European UAV producers. The acquisition fits into the DEZ
strategy to strengthen the Defence unit by further external investments.
While current (FY25e) DEZ sales in the defence unit account for only around
2% of group sales the acquisition will quickly ramp up to a significantly
higher proportion in upcoming years. The increasing importance of the
fast-growing defence unit at DEZ including a rising margin level might lead
to a higher valuation of the stock. We confirm our Buy Rec and raise our TP
supported by the updated DCF model to EUR 11.00 EUR (prev. EUR 9.00).

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=cdaa92bc839545c5a9361c66fe1d9bdd
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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2192756 03.09.2025 CET/CEST

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