Original-Research: Eckert & Ziegler SE (von NuWays AG): BUY

Classification of NuWays AG to Eckert & Ziegler SE

Company Name:	Eckert & Ziegler SE
ISIN:	DE0005659700
Reason for the research:	Initiation
Recommendation:	BUY
Target price:	EUR 23
Target price on sight of:	12 month
Last rating change:
Analyst:	Simon Keller

Atoms to decay, profits to stay; INITIATE WITH BUY EUZ shares have declined 28% over the past six months, despite no structural business deterioration. The recent underperformance appears like a valuation dislocation, not reflecting EUZ’s unique positioning at the heart of one of the most attractive growth segments in modern medicine: targeted radiopharmaceuticals. Targeted radiopharmaceuticals are the next phase of cancer therapy, delivering radiation directly to tumour cells with higher precision and fewer side effects than conventional methods. As a result, the market for nuclear medicine is expected to grow with a 17% CAGR into 2029e (source: MedRays). Growth is driven by expansion into earlier treatment lines, a broadening patient population, more indications and a global penetration. Every radiopharmaceutical therapy ultimately depends on the reliable supply of radioisotopes, the core of EUZ’s business model. This “picks-and-shovels” positioning delivers structural growth with balanced risks, especially as EUZ has an isotope-agnostic offering, helping to diversify across drugs and customers. Moreover, EUZ sits at the knowledge and quality bottleneck of the supply chain, explaining EBIT margins in the high 20% for the radiopharmaceutical business. Deep competitive moat built over decades: EUZ combines early-mover advantages, radiation-specific know-how and an integrated global footprint that is difficult to replicate. Long-standing customer relationships, regulatory approvals, qualified production sites and regulatory lock-in effects create high switching costs and tangible entry barriers. These advantages translate into consistently high ROCEs (16% on avg. 2021-27e), even as the company continues to invest in future growth capacity. While EUZ’s radiopharma business (half of group sales) is set to grow in line with the market, legacy radiation-based activities are expected to remain stable. Combined with an increasingly favourable mix, this underpins an EPS CAGR of 17% over 2024–28e (eNuW). All comes at a compelling valuation: 66% upside to peers on PER’26e and a 42% discount to its own historic 5-year PER (median: 34x, eNuW). This upside is underpinned by our DCF-derived PT of € 23. While near-term results are unlikely to be a major catalyst, H1 26e should see several relevant study read-outs, providing meaningful support for the radiopharmaceutical investment case. INITIATE with BUY, viewing EUZ as a rare high-quality, infrastructure-like compounder, benefiting from the rapid radiopharmaceutical market growth. - continued - You can download the research here: eckert-and-ziegler-se-2026-01-08-fullnoteinitiation-en-03b63 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 ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse. ++++++++++