Carl Zeiss: Significant Underperformance, Valuation At Multi-Year Lows

Summary

• Carl Zeiss Meditec has seen a 30%+ decline due to earnings and margin drops, but remains a strong market leader with significant long-term upside.
• Despite current underperformance, the company's strategic R&D investments and growing recurring revenue position it well for future recovery and growth.
• The company's valuation has dipped, but I believe it offers a compelling long-term upside, with potential annualized returns of 15-30%.
• I maintain a "buy" rating with a price target of €130/share, emphasizing the importance of long-term investment and market normalization.