First Berlin Equity Research has published a research update on Schloss Wachenheim AG (ISIN: DE0007229007). Analyst Simon Scholes reiterated his BUY rating and increased the price target from EUR 19.00 to EUR 20.00.

Abstract
The number of bottles sold in Q1 25/26 jumped 6.7% to 54.9m (Q1 24/25: 51.4m) – the highest quarterly volume increase in over five years. Volume growth was helped by strengthening private label sparkling business in Germany and a rebound in the France segment following a weak prior year quarter. Sales underperformed volume, rising 3.5% to €106.0m (FBe: €105.0m; Q1 24/25: €102.4m) due mainly to product mix effects. EBIT, which came in at €5.3m (FBe: €4.4m; Q1 24/25: €4.2m) was ahead of our forecasts because of better France segment profitability than we had modelled. Exports from France are now rising after two years of declines. Overall France segment performance is expected to continue to benefit in 2025/26 from lower procurement costs while volume in Germany (Q1 25/26 bottles sold: +9.0%) looks set to remain robust. Management is upbeat about the crucial Christmas quarter and has reiterated full-year guidance for EBIT of €30m-€33m and profit before non-controlling interests of €18m-€21m. We maintain our Buy recommendation and have raised the price target from €19 to €20 to reflect an increase in our forecasts and a decline in the 10-year German government bond yield to 2.66% from 2.75% at the time of our most recent study of 29 September. Upside: 28%.