Nedap (AO) | Hold | Livestock leads, recurring revenues compound

Research evidence excerpt

Nedap (AO) | Hold | Livestock leads, recurring revenues compound

Nedap Hold | Target Price: EUR87.00

Key market developments

Healthcare. New wins across disability care, youth care and general practice reinforced Nedap's position in the shift to “network

care.” Ons® Suite adoption, plus MediKIT and Luna, drove growth. With recurring revenues, high customer retention and

indexation, Healthcare remains the group's most predictable earnings engine.

Livestock. The standout, and singled out by management. Growing farmer demand for data-driven herd insight lifted the Cow

Monitoring Platform, SmartTags and SmartSight; Nedap opened a new fully automated SmartTag line in the Netherlands to add

capacity. Notably, growth remained strong despite milk prices staying well below 2025 levels, reinforcing our view that

investment is increasingly driven by structural productivity gains rather than the agricultural cycle. The continued shift toward

SmartTags and SmartSight subscriptions also further expands the recurring revenue base.

Retail. New long-term partnerships around the Inventory Engine as retailers pursue end-to-end inventory visibility; momentum

strong across North America and EMEA. Amortization of RFID Pro-Line Readers has now begun, the main driver of the step-up in

amortization (EUR1.2m vs EUR0.7m).

Security. Continued investment in Mobile Access and long-range identification, with recurring growth from cloud solutions (Pace,

Mobile Access). The main weakness remained project delays in the Middle East, where geopolitical uncertainty weighed on H1

activity. We continue to view Security as Nedap's most geopolitically exposed business. At the same time, the opening of a Saudi

office signals that management remains confident in the region's longer-term growth potential.