Classification of NuWays AG to DO & CO AG

Company Name:	DO & CO AG
ISIN:	AT0000818802
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 266
Target price on sight of:	12 months
Last rating change:
Analyst:	Simon Keller

Operational momentum intact, chg.

Thanks to high demand for air travel and new contract additions, DOC’s Q3 25/26 results (CYQ4) are set to reaffirm the strong fx-adj. momentum from previous quarters. While reported growth figures might look weak at first glance on February 12th (see p.2), this should be almost entirely due to the accounting effect of Turkey’s hyperinflation and other fx-headwinds (eNuW: adj. sales growth 9% yoy). Importantly, also reported figures should improve materially in Q4 again, hence FY growth estimates remain intact (eNuW: +8.8% yoy).

Operationally, fiscal Q3 should face strong air travel demand, with upbeat October data: higher capacity and better utilization (source: IATA; international Available Seat Kilometres +7.1% yoy, international Passenger Load Factor +0.7pp yoy). Moreover, December is showing the highest growth in scheduled seats this year of +4.7% yoy, a forward-looking activity measure from IATA (also see p. 2), with momentum to stick into next year. This macro-support should benefit DOC’s Airline Catering segment’s underlying performance (80% of group sales, eNuW: fx-adj. sales growth of c. 9% yoy).

Within the International Event Catering segment (c. 12% of group sales), fiscal H2 is not expected to show meaningful growth, due to exogenous factors. Still, adj. for the European Football Championship last year (eNuW: € 28m impact), sales look set to increase 11% yoy in full FY 25/26e (eNuW, +1% yoy when including last year’s big event). Moreover, momentum is seen to build for the next year already: the Allianz Arena plans several high-demand open-air concerts (e.g. Linkin Park, The Weeknd and Helene Fischer), following an open air concert prohibition previously. Also the NFL is set to return to the arena, which should all benefit DOC, the arena’s official hospitality and catering partner. Moreover, Formula 1 should run hot again, with a completely new team (Cadillac) and a change in location: Madrid for Imola. The replacement is structurally positive for DOC, as the new urban race format supports higher hospitality penetration and premium pricing. Consequently, in FY 26/27e the segment is poised to accelerate growth to 12% yoy (eNuW: € 346m).

Group prospects continue to look bright, in light of the ongoing need for airlines to differentiate via DOC’s services, especially for relevant business- and first-class customers. In fact, DOC’s unique focus and solid execution explains the high customer satisfaction (95% renewal rate), which, together with efficient capital management, results in ROCEs >20%. All backed with solid visibility: currently c. 70% of group sales are contract-based until 2030e. DOC’s positioning within this growing market also explains an EPS CAGR of 24% between FY 24/25 and 27/28e (eNuW, €-based), rendering the current PER of 20x appealing.

BUY, unchanged PT of € 266, based on DCF.

You can download the research here: do-co-ag-2026-01-05-longupdate-en-3c07a
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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