NuWays AG Endorses q.beyond AG with a BUY Rating in Latest Research Update

NuWays AG has updated its investment analysis on q.beyond AG, maintaining a BUY recommendation with a target price of €1.00. The report highlights significant growth within q.beyond, particularly in its SAP and Cloud & IoT segments, contributing to a 9% year-over-year increase in Q4 sales to €50.8 million. The company's FY '23 sales also saw a 9.4% increase, reaching €189 million, with the productive-data acquisition being a notable growth driver.

The financial analysis reveals a substantial increase in Q4 EBITDA, reaching €5.8 million and marking a 358% year-over-year growth, primarily due to favorable tax decisions. Despite challenges, q.beyond has achieved breakeven free cash flow (FCF) ahead of schedule and is exploring M&A opportunities to expand into new verticals. This proactive strategy highlights q.beyond's robust financial health and potential for further growth.

The company has issued an optimistic FY '24 guidance, targeting sales between €192-198 million and an EBITDA of €8-10 million. This ambitious outlook is supported by operational improvements and strategic initiatives, including an increased focus on off- and near-shoring, consulting, and process streamlining under the one-q.beyond project. Additionally, q.beyond plans to revamp its segment reporting in 2024 to better reflect its strategic focus areas.