Netfonds AG: Strategic Acquisitions and Positive Outlook Fuel Growth

Netfonds AG has received a “Buy” recommendation from NuWays AG, with a new target price set at EUR 74.00. The research update comes after a recent digital roundtable, where CFO Peer Reichelt provided an optimistic business outlook.

Netfonds' subsidiary, GSR GmbH, acquired 80% of another fund initiator, increasing its Assets under Management (AuM) by €140 million to €330 million. This acquisition is expected to positively impact EBITDA by €300k-€600k in 2024, with an estimated purchase cost of €2-3 million.

Netfonds reported strong figures in H1, with record Q1 figures including €25.1 billion in AuC and €56 million in gross sales. Organic growth is likely to continue, driven by smaller acquisitions, the launch of a money market fund, and the acquisition of an umbrella in Luxembourg.

The consolidation of the insurance brokerage market is fueled by Netfonds’ proprietary finfire platform, which simplifies the selling and managing of insurance products. This enhances cross-selling opportunities and is a key driver of Netfonds' growth and scalability.

Overall, Netfonds is on track to meet its mid-term target of €59 million net sales and €23 million EBITDA by FY26.