PRESS RELEASE
from Netfonds AG (isin : DE000A1MME74)
Original-Research: Netfonds AG (von NuWays AG): Buy
Original-Research: Netfonds AG - from NuWays AG
21.11.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
Classification of NuWays AG to Netfonds AG
| Company Name: | Netfonds AG |
| ISIN: | DE000A1MME74 |
| Reason for the research: | Update |
| Recommendation: | Buy |
| from: | 21.11.2024 |
| Target price: | EUR 76.00 |
| Target price on sight of: | 12 months |
| Last rating change: | |
| Analyst: | Frederik Jarchow |
Q3 figures in line with est. // bond issuing announced; chg
Topic: Netfonds reported solid Q3 figures in line with our estimates on both, top- and bottom line. With that, the upper end of the guidance is in reach. Further, Netfonds announced a planned M&A transaction and a planned bond issuing. In detail:
Gross sales grew by 16% yoy to € 56.2m, in line with our estimate of € 56m. Main driver was the strong AuA and AuM development with new record levels of € 27.2bn (+14% YTD; 20% yoy) and € 3.7bn, both above our estimates of € 26.7bn and € 3.5bn (eNuW old). Consequently, we increased our estimates for FY24 of € 27.4bn AuA and € 4.0bn AuM.
EBITDA came in above estimates at € 1.9m (-5% qoq, 46% yoy vs eNuW: € 1.8m), mainly driven by the solid topline growth paired with stable OPEX compared to previous quarters, showing the strong operating leverage of the platform business.
Going forward, we see further sequential growth mainly on the back of the strong AuA growth that should become visible in top- and bottom-line with a slight delay but also driven by value accretive M&A transactions (i.e. MFK and Comfort Finance) as well as the launch of an own money market fund earlier this year with already above € 75m end of Q2. As a result, the confirmed guidance for FY24 of € 220-230m in gross sales and € 41.5-43m in net sales can hence be taken as granted.
Apart from that, Netfonds announced to have signed an LOI subject to the acquisition of another fund initiator. The potential target would add approximately € 100m in volume. The acquisition price is expected to be in the mid-single-digit millions. This acquisition is indicating once again that Netfonds is playing an active role in the market consolidation. In order to finance this and further potential transactions, Netfonds plan to issue an unsecured bond with a low- to mid-double-digit million volume.
Overall and on the back of 1) the strong operating performance, 2) Netfonds 360° finfire platform being the key mid- to long term growth and scalability driver and 3) further value accretive M&A transactions, we see Netfonds well on track to reach its mid-term target of € 59m net sales (vs eNuW: € 60m) and € 23m EBITDA (vs eNuW: € 21m) by FY26.
BUY with a new PT of € 76.00, based on DCF.
You can download the research here: http://www.more-ir.de/d/31399.pdf
For additional information visit our website: www.nuways-ag.com/research
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
2035179 21.11.2024 CET/CEST