First Berlin Equity Research has published a research update on Knaus Tabbert AG (ISIN: DE000A2YN504). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 29.00 price target.

Abstract
As expected, Q1 reporting was down Y/Y. But tangible progress in the strategic overhaul provided a silver lining that was not yet visible in the prior quarter. Realignment initiatives have finally released cash from working capital. This negated the weak operating performance in Q1 leading to FCF generation of €15m. Plus, management confirmed guidance (~€1bn sales; 5.0% to 6.5% AEBITDA margin), which indicates that earnings should pick up during the coming quarters. There is more work to be done, particularly in optimising the balance sheet, but the initiatives have things finally moving in the right direction, and we should have an indication on the potential of the revamped business later this year. We stick to our Buy rating and €29 TP (upside: 112%).