Classification of NuWays AG to Limes Schlosskliniken AG

Company Name:	Limes Schlosskliniken AG
ISIN:	DE000A0JDBC7
Reason for the research:	Initiation
Recommendation:	BUY
Target price:	EUR 600
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

A good investment in a good cause; INITIATE with BUY

LIMES Schlosskliniken AG (“LIMES”) is a premium provider of psychiatric and psychosomatic care, operating a growing network of medically led private clinics in Germany, Switzerland and Liechtenstein. The group combines evidence-based treatment, strong clinical governance and restorative environments into a model designed to meet structurally rising demand for high-quality mental-health services in the DACH region. As public-sector capacities remain constrained and prevalence rates continue to climb across all demographic groups, LIMES is positioned at the intersection of medical necessity, societal relevance and scalable economic potential.

Founded in its current form in 2015, the company has developed a clearly differentiated therapeutic concept, anchored in interdisciplinary psychiatry, psychotherapy and psychosomatic medicine, complemented by sports therapy, mindfulness practices and structured daily routines. This model is implemented across all sites and overseen by a central medical leadership and a scientific advisory board. The result is a treatment architecture difficult to replicate in the private market and highly valued by referring physicians, insurers and corporate health partners.

The group now operates six clinics: Mecklenburgische Schweiz (opened 2016), Bad Brückenau (2020), the newly launched Bergisches Land and Abtsee (both 2025), as well as majority-stakes in Paracelsus Recovery in Zurich (56%) and Clinicum Alpinum in Liechtenstein (51%). This footprint enables LIMES to serve adult, adolescent and high-acuity international segments within a unified quality framework.

Demand-side fundamentals remain exceptionally strong. Rising incidence of depression, burnout, trauma and anxiety disorders, combined with long waiting times in public psychiatric care, have created a structural treatment gap that LIMES is uniquely positioned to address. Particularly relevant is the pronounced increase among highly educated, professionally active cohorts, and the youth segment, which is targeted via the new clinic Abtsee.

With two new clinics onstream since July 2025, LIMES enters a phase where newly added capacity meets an undersupplied and growing market. Supported by strong referral pathways, high therapy intensity and a brand associated with medical quality rather than commercial positioning, the group is set to benefit from rising utilisation, operating leverage and improved cash-flow conversion. In fact, sales are seen to compound at >20% p.a. through FY28e, driven primarily by volume growth as new clinics ramp up.

Against this backdrop, we also expect significant margin expansion going forward given improved fixed cost coverage and stabilising treatment intensity. Hence, EBIT is seen to 5x to € 21.3m by FY28e (24.9% margin; +13.4pp vs FY24), also resulting in a strongly sharpened return profile with ROICs of >50%.

On the basis of structural demand, disciplined expansion and improving profitability, LIMES represents a compelling long-term quality growth story within premium inpatient mental health. We initiate coverage with BUY and a € 600 PT based on DCF.
 

You can download the research here: limes-schlosskliniken-ag-2025-12-11-fullnoteinitiation-en-e6fad
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
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