MLP SE Receives "BUY" Recommendation from NuWays AG with Positive Outlook

NuWays AG has updated its financial analysis on MLP SE, retaining a "BUY" recommendation and establishing a target price of EUR 11.00. The positive outlook is underpinned by MLP's preliminary full-year results for 2023, which showcased a better-than-expected performance, particularly in the real estate sector. For the first time since 2021, MLP is anticipated to register performance fees in the first quarter, signaling a potential for additional revenue streams.

The fourth quarter sales aligned with projections, reporting a 5% year-over-year increase to €289 million. Noteworthy contributions came from various segments, including a significant rise in Interest Income and Non-Life Insurance. Moreover, a noteworthy rebound in Real Estate sales was observed, contradicting previous downward trends. Earnings Before Interest and Taxes (EBIT) for Q4 also met earlier predictions, notwithstanding a one-off impairment charge.

Looking forward, MLP has provided a cautious EBIT forecast for FY'24, expected to range between €75-85 million. This guidance, perceived as conservative by some analysts, does not fully account for the promising resurgence in the Real Estate domain and the anticipated performance fees. By the end of FY'25, MLP aims for an EBIT between €100-110 million, supported by its diversified business model and emphasis on efficiency.

Analysts at NuWays AG argue that MLP's stock is currently undervalued, especially with an upcoming uplisting to the SDAX expected to enhance its market visibility. The consistent positive developments reinforce the BUY rating, with a steady target price anchored in projected cash flows and sum-of-the-parts valuation.