Steyr Motors AG Downgraded to HOLD

Steyr Motors AG has been downgraded from BUY to HOLD by NuWays AG, setting a new target price of €39, aligning with Red Cat's cash offer. This shift follows a takeover announcement, expected to influence the company's trading liquidity. Regulatory clearances are still pending, primarily from foreign investment authorities in Austria, Australia, Italy, and the UK. The clearance deadline extends to mid-2027, challenging the initial acceptance deadline in 2026.

Steyr Motors' Q3 earnings have improved, with a 11.2% increase in sales year-on-year, reaching €12.5 million. This growth is attributed to resumed deliveries under the KNDS framework. However, reported EBIT dropped to €0.4 million due to consulting expenses. Looking forward, expectations remain high for the year-end, bolstered by the US Navy SEALs tender support.