Original-Research: Steyr Motors AG (von NuWays AG): HOLD

Original-Research: Steyr Motors AG - from NuWays AG



11.11.2026 / 09:00 CET/CEST
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Classification of NuWays AG to Steyr Motors AG



     Company Name:                Steyr Motors AG
     ISIN:                        AT0000A3FW25



     Reason for the research:     Update
     Recommendation:              HOLD
     Target price:                EUR 39
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Simon Keller



Takeover reshapes the investment case; down to HOLD



We downgrade Steyr Motors from BUY to HOLD and set a technical PT of EUR 39
(prev. EUR 49), in line with Red Cat's cash offer. We continue to see
long-term standalone value above the offer price. However, Red Cat intends
to initiate a delisting after settlement, subject to the applicable
withdrawal and exit-offer requirements. The expected reduction in free float
also points to lower trading liquidity. With the offer still subject to
completion risk and limited visibility on shareholders' ability to realise
the standalone upside, we no longer see a compelling case for new
investment.



Key shareholder support strengthens the deal. Regulatory clearance remains a
hurdle. Both Steyr boards unanimously recommend acceptance, and B&C's
commitment to tender its c. 15% stake provides a solid starting point
towards the 50% plus one share threshold. Completion requires clearance from
the foreign investment authorities in Austria, Australia, Italy and the UK.
The deadline for obtaining these regulatory clearances is 30 June 2027, well
beyond the initial acceptance deadline of 18 December 2026. We view the
remaining spread to EUR 39 as compensation for completion risk and an
uncertain settlement timetable, limiting its appeal as a reason to buy
(eNuW).



We expect Red Cat to accelerate growth in Steyr's marine engine business.
Steyr's specialised engines fit Red Cat's expansion into unmanned surface
vessels (USVs). Broader defence customer access and closer involvement in
platform development should help Steyr secure engine positions on future USV
programmes, supported by additional development and production resources.
These growth opportunities reinforce our positive view of Steyr's operating
potential.



Q3 showed a recovery in adj. earnings. Sales rose 11.2% yoy and 13.4% qoq to
EUR 12.5m as deliveries under the KNDS framework started in September. Gross
margin improved by 3.1pp yoy to 46.6%, helping lift adj. EBIT to EUR 1.4m from
EUR 0.9m in Q3 25 and the corresponding margin to 11.4% (+3.3pp yoy). Reported
EBIT fell to EUR 0.4m from EUR 0.6m, with adjustments mainly relating to
consulting expenses.



We expect a stronger finish to the year. KNDS deliveries and call-offs under
the US Navy SEALs tender support the acceleration embedded in our forecasts.
Our FY26 estimates remain close to the midpoints of management's confirmed
guidance of 15-25% sales growth and an 8-12% EBIT margin. Nonetheless, the
delays seen earlier this year leave some uncertainty over the timing of
individual project revenues (eNuW).



HOLD (old: BUY), new technical PT of EUR 39 (old: EUR 49), based on the takeover
offer price, which represents a c. 29% premium to the last Xetra closing
price before the announcement.



You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=41f69123086797d58e8acdda89626e1b
For additional information visit our website:
https://www.nuways-ag.com/research



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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++



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2432300 11.11.2026 CET/CEST