NuWays AG Recommends Marley Spoon Group SE as a Buy

NuWays AG has updated its recommendation for Marley Spoon Group SE (MSG) to "BUY" with a target price of €5.40. The update follows the release of MSG's Q2 2024 results, which showed sales of €87 million, an increase of 1% year-on-year.

Despite a 17% decline in the number of active subscribers, the revenue contribution from bistroMD offset the decrease, adding around €7 million to the quarterly sales. Key performance indicators also showed signs of recovery, with a stabilization in the subscriber base and improvements in order frequency and basket size.

MSG also managed to expand its contribution margin to 34.6% and achieved a positive operating EBITDA margin of 1.2%, driven by reduced promotional activity and cost savings from its partnership with FreshRealm.

Based on these solid Q2 results, MSG has confirmed its guidance for FY 2024, expecting single-digit sales growth and a contribution margin of around 31.5%. Operating EBITDA is projected to grow to a positive mid-single-digit figure.

NuWays AG reaffirms its BUY rating for MSG shares, highlighting the attractive risk-reward proposition despite potential delays in sales recovery and cost downsizing.