DO & CO AG Maintains Strong Growth Despite Economic Challenges

DO & CO AG has been categorized as a "buy" by NuWays AG, with a target price set at EUR 266 for the next 12 months. The company's operational momentum is expected to remain robust, bolstered by increasing air travel demand and new contracts in their Airline Catering segment, accounting for 80% of group sales. Despite challenges like Turkey's hyperinflation impacting reported growth, adjusted sales growth remains strong at 9% year-on-year.

The International Event Catering segment, representing 12% of group sales, faces some headwinds but shows potential for growth with upcoming high-demand events and concerts. This segment is projected to accelerate growth to 12% year-on-year in FY 26/27, supported by strategic changes like the new urban Formula 1 race in Madrid.

DO & CO's unique market positioning and high customer satisfaction underpin its financial health. With a projected EPS CAGR of 24% between FY 24/25 and 27/28, and a price-to-earnings ratio of 20x, the outlook remains positive.