NuWays AG Maintains BUY Rating on NFON AG Amid AI-Driven Profitability

NuWays AG has reiterated its BUY recommendation for NFON AG, setting a target price of €12.10. The upcoming Q2 report is projected to show modest sales growth of 5.1% year-on-year to €22.4 million, primarily driven by botario's AI solutions. The legacy business is expected to remain stable amid economic challenges and cautious IT spending.

The report suggests a 12.6% adjusted EBITDA margin, attributing improved profitability to the strong performance of botario. NuWays anticipates prolonged external pressures impacting top-line growth guidance, with sales likely increasing by just 5.1% this year. However, the AI integration is expected to enhance revenue diversification and operational efficiency, supporting growth beyond FY26.

The acquisition of botario is seen as a significant contributor to NFON’s strategic advancements, while new AI-powered features are enhancing customer value. NFON continues to streamline operations under its "NFON NEXT 2027" strategy.