Nabaltec AG: Robust Performance Amidst Valuation Challenges

NuWays AG has reaffirmed its "BUY" recommendation for Nabaltec AG amid challenging industry conditions. Despite operating in a tough market, Nabaltec showcases resilient margins and strong operating cash flows, supported by an improved balance sheet. However, its shares currently trade at their lowest level in over ten years, presenting an opportunity for investors.

The financial performance in Q4 continued the trend of the year's earlier quarters, with sales expected around €44.4 million. This positions Nabaltec near the lower end of its yearly sales guidance but maintains the mid-point margin guidance due to robust demand for ground hydroxides.

Looking ahead to 2026, Nabaltec is projected to achieve sales growth of 5.6%. The completion of the current capital expenditure program is expected to enhance production capabilities, marking a phase of stabilized expenses leading to potential sales up to €300 million.