As we have reported several times, order intake and the order backlog at defense contractor VINCORION are very strong… and if everything goes “as usual,” this will sooner or later be reflected in the income statement! We even expect that the next earnings report could already be very positive. In any case, the key drivers remain new products and the demand for defense equipment, which is likely to persist for years to come! In particular, the two new products—"Tactical Power Systems" and the "electronic rescue winch"—will provide even broader support for revenue growth and, likely, margin growth as well. For TPS, commissioning is already scheduled to begin as early as 2027. VINCORION supplies power supply, energy management, and stabilization systems. Revenue from the aftermarket business (maintenance, repairs, replacement parts, accessories, retrofits, and services) accounts for approximately 54% of total revenue, thereby ensuring a steady stream of recurring income.
Now, since the end of September, Deutsche Bank has also initiated coverage, meaning the major bank has issued a clear “Buy” recommendation for VINCORION stock! It forecasts annual revenue growth of +15% through 2030, driven in part by higher volumes in the Vehicle Systems segment and the expansion of the Power Systems business segment. Deutsche Bank sets the price target at EUR 26, which is even about +8% above our target of EUR 24. At the moment, the stock market still lacks the necessary momentum, and we assume that investors are in fact just waiting for the company’s next earnings report to confirm that significant price increases are only a matter of time; the fundamental facts certainly aren’t the issue. And as mentioned earlier, earnings momentum should start to pick up in 2027, with a positive outlook for the following years. If these various assumptions are confirmed, we’ll soon see higher trading volume for VINCORION on the stock market… with potentially very rapid price increases! Is it really that simple? We’ll see.
VINCORION is listed on the XETRA in Frankfurt under the symbol V1NC; the security number is 154,528,992, and the last price was approximately EUR 18.18.
