Original-Research: PFISTERER Holding SE (von GBC AG): BUY

Classification of GBC AG to PFISTERER Holding SE

Company Name:	PFISTERER Holding SE
ISIN:	DE000PFSE212
Reason for the research:	Research study (Initial Coverage)
Recommendation:	BUY
Target price:	48.00 EUR
Target price on sight of:	31.12.2025
Last rating change:
Analyst:	Cosmin Filker, Marcel Goldmann

Attractive triad of dynamic business development, high profit margins and strong market growth

PFISTERER Holding SE (PFISTERER) reported on 14 May 2025 that it had successfully listed on the Scale segment of the Frankfurt Stock Exchange. A total of 6.97 million shares were placed: 3.5 million shares came from a capital increase, with the remaining shares coming from the reallocation of existing shareholders. At an offer price of €27.00, PFISTERER will receive cash proceeds of approximately €95 million (GBC estimate, net: €85.90 million). Among other things, the IPO proceeds will be used to finance the company's CAPEX programme in order to expand existing production capacities and address growth markets with newly developed products.

Their successful IPO means that the world's only independent supplier of connection and insulation technology for electrical grids, covering all voltage levels and grid connections, is now represented on the capital market. Founded in 1921, PFISTERER offers products developed in-house for the areas of 'generation', 'transmission' and 'distribution' based on the two materials silicone and metal. The company has a range of products in its portfolio for every interface in the electricity grid, which are essential components of the transmission and distribution networks. Customers include grid operators, cable manufacturers, general contractors, etc. As PFISTERER covers the entire voltage spectrum with its products, there is a high barrier to market entry, which is also secured by long-standing customer relationships and development partnerships.

With its product range, PFISTERER is part of a market that is characterised by increasing demand for electricity (economic growth, electromobility, AI, etc.) on the one hand, and a partially outdated energy infrastructure on the other. In addition, the infrastructure is in a transformation phase (decentralisation, HVDC), which is accompanied by a high investment requirement overall. According to a study by Roland Berger, the market addressable by PFISTERER is expected to grow by an average of 11.6% in the coming years.

With its growth strategy, the company aims to participate disproportionately in market growth. On the one hand, growth in the core business is to be realised by gaining market share. On the other hand, global presence is to be expanded. Finally, new products are to be developed. The focus here is on the HVDC sector and a general expansion of products in the high-margin high and extra-high voltage range (over 250 kV). To this end, PFISTERER has launched a CAPEX programme of € 215 million, which will be financed by the cash inflow from the IPO on the one hand and the expected positive cash flows on the other.

This is intended to continue the growth trajectory already embarked upon in previous financial years. In 2024, sales growth amounted to 14.7% (€ 383.12 million) and the EBITDA margin improved to 15.7%, which corresponds to EBITDA of € 60.15 million. According to our estimates, which cover the period up to 2030, sales should increase to € 717.02 million (2030) and EBITDA to € 141.91 million, which would then correspond to an EBITDA margin of 19.8%.

As part of our DCF valuation model, we have determined a target price of €48.00 per share, which corresponds to a fair market capitalisation of €868.52 million. Based on the current share price, this represents upside potential of 22.0%. We are initiating coverage of PFISTERER Holding SE with a BUY rating.

You can download the research here: http://www.more-ir.de/d/32900.pdf

Contact for questions:
GBC AG
Halderstrasse 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
https://www.gbc-ag.de/de/Offenlegung
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Completion: 23.06.2025 (09:13 am)
First publication: 24.06.2025 (10:00 am)