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Original-Research: Deutz AG - from Quirin Privatbank Kapitalmarktgeschäft

03.09.2025 / 17:38 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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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 sale

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:

https://eqs-cockpit.com/c/fncls.ssp?u=cdaa92bc839545c5a9361c66fe1d9bdd

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2192756 03.09.2025 CET/CEST

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