SMAG Mobile Antenna Masts AG: Strong Growth Outlook with TaWAN Program

SMAG Mobile Antenna Masts AG has been classified as a "buy" by NuWays AG, with a target price set at EUR 47 over the next 12 months. SMAG specializes in mobile communications infrastructure, crucial for tactical radio links on the digital battlefield. Its products provide exceptional height and payload capacity, reaching up to 40 meters and 600 kg, respectively. The company has deployed more than 2,000 systems globally.

The €1.4 billion total order backlog signals strong future earnings growth. The key project, TaWAN, is central to SMAG's plans, accounting for €868 million of the backlog. The project is crucial for Germany's NATO commitments and is expected to significantly boost SMAG's revenues and production capabilities. The CEO of Rheinmetall has suggested potential expansion, further enhancing SMAG's prospects.

Production is accelerating, with expected output growth at a CAGR of 49% from 2025 to 2028. This expansion is likely to increase EBIT significantly, driven by TaWAN deliveries and production enhancements. Demand in sectors like air defense and passive surveillance also present additional growth opportunities.

SMAG's stock trades about 45% below its peer value, presenting an attractive investment opportunity with substantial upside potential.