First Berlin Equity Research has published a research update on Schloss Wachenheim AG (ISIN: DE0007229007). Analyst Simon Scholes downgraded the stock to ADD and decreased the price target from EUR 18.00 to EUR 17.00.

Abstract
Final results for the financial year ending 30 June were below both our forecasts and guidance given with the Q3 results on 7 May. Sales climbed 0.3% to €448.9m (FBe: €458.8m; 2024/25: €447.4m) while EBIT edged 1.5% higher to €27.6m (FBe: €30.0m; 2024/25: €27.2m). Guidance provided on 7 May was for sales growth and EBIT respectively at the lower end of 3%-6% and €30m-€33m ranges. Volume, sales growth and profitability weakened in Q4 as higher energy prices and inflation triggered by the geopolitical events in Iran landed a further blow on already fragile consumer sentiment. For 2026/27 SWA’s management is guiding towards slight increases in volume and sales, and EBIT in the range of €28m-€32m, implying growth of 1%-16% in this latter metric. The expected improvement in performance is driven primarily by the France and East Central Europe segments. In France, in particular, shifts in the sales mix and changes in procurement prices are expected to drive a significant increase in the gross margin. In Germany, however, the gross profit is expected to expand at a lower rate than revenue, and product mix shifts and higher procurement prices are expected to push segment EBIT lower despite expected improvements in profitability at the wine retail business. We have reduced our 2026/27 sales and EBIT forecasts by 4.4% and 7.8% respectively in alignment with company guidance. We have lowered the price target to €17 (previously: €18) and moved the recommendation from Buy to Add as the share price upside at 12% is below the 25% hurdle we use for a Buy recommendation.