First Berlin Equity Research has published a research update on Schloss Wachenheim AG (ISIN: DE0007229007). Analyst Simon Scholes reiterated his BUY rating and decreased the price target from EUR 19.00 to EUR 18.00.

Abstract
SWA’s post-Christmas quarter is seasonally its weakest period of the year. Q3 25/26 sales fell 0.3% to €86.2m (FBe: €89.9m; Q3 24/25: €86.5m), while EBIT came in at €-3.1m (FBe: €-2.1m; Q3 24/25: €-2.4m). Sales in Germany and East Central Europe climbed by 0.5% and 3.4% respectively, but sales in France fell 2.8%. Ongoing uncertainty caused by the Ukraine war and US tariff policy, as well as the additional impact of the Iran war on mobility costs, weakened consumer spending on SWA’s markets during the quarter. Management has maintained guidance for 2025/26 sales growth of ca. 3%-6% and EBIT of €30m-€33m, but in the Q3 25/26 report states for the first time that results are likely to come in at the lower end of these ranges. In the longer term, we expect political and economic pressures in Russia and the US to force an end to both the Ukraine and Iran wars. In this scenario, falling inflation and improving business and consumer confidence will positively impact SWA’s business. However, in light of the weak Q3 25/26 results we have reduced our near-term earnings forecasts slightly. We maintain our Buy recommendation but have reduced the price target from €19 to €18 (upside: 31%) to reflect our lowered forecasts as well as increased long term interest rates since our last study of 25 February.