Original-Research: Deutz AG (von Quirin Privatbank Kapitalmarktgeschäft): Buy

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: DEUTZ_AG_20250903
For additional information visit our website: https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
[email protected]
https://research.quirinprivatbank.de/