2025-06-04-Jefferies-DO_CO（DOC）_美国市场疲软仍局限于低端市场——目标价上调至215欧元_12页_508kb

Summary of Equity Research on DO & CO Aktiengesellschaft

DO & CO Aktiengesellschaft (Ticker: DOC AV) is recommended as a buy in a Jefferies research report dated June 4, 2025. The price target (PT) is raised to €215 from €212, driven by strong 9-month results and an 8% increase in EBIT estimates. This PT is based on a discounted cash flow (DCF) model and cross-checked with peer multiples, supporting a fair valuation.

Key reasons for the buy recommendation include Do&Co's strategic focus on premium and long-haul airline catering segments, which benefit from U.S. market weaknesses primarily affecting lower-end segments. Financially, Do&Co's robust performance and projected sales and EBIT growth of around 8% for the next three years underpin the upgrade. Competitive advantages are highlighted by Gategroup's continued losses and pricing actions by competitors, which may drive client transitions to premium offerings like those offered by Do&Co.

Valuation metrics include a price-to-earnings (PE) ratio of approximately 21.5 and an enterprise value-to-EBITDA ratio of 9.6, reflecting analyst optimism. Catalysts for potential upside include further tender wins and higher utilization of existing kitchens, while risks involve possible reversion in international travel, cost escalations, and currency fluctuations.

Analysts provide conservative financial outlooks, with PT at €215 implying a moderate upside from current levels. The report emphasizes Do&Co's position in a growing airline market, with IATA expected to drive passenger growth, supporting medium-term sales compound annual growth rate (CAGR) assumptions.