Original-Research: MLP (Von Nuways AG)

(MENAFN- EQS Group) Original-Research: MLP - from NuWays AGClassification of NuWays AG to MLPCompany Name: MLPISIN: DE0006569908Reason for the research: UpdateRecommendation: Kaufenfrom: 04.04.2024Target price: EUR 12.00Target price on sight of: 12 MonatenLast rating change: Analyst: Henry WendischDry spell's over: Comeback of performance fees; chg. est. For the first time since Q4 2021, MLP looks set to record performance feesof € 7m in Q1, as capital markets have developed favourably, pushing FERI'sfunds to new high water marks. In detail: FERI's largest fund, the EquityFlex, surged 11.5% during Q1, outperformingthe benchmark by 1.5pp (S&P500: +10% in Q1). Performance based compensationamounts to 15% of that outperformance and given EquityFlex' volume of €1.36bn ($ 1.46bn), we should see € 2.9m of performance fees. The second largest fund (OptoFlex) closed 6.1% above its old ATH, exceedingthe € STR of 3.9% (Optoflex' Benchmark) by 2.1pp. MLP also receives 15% ofthat outperformance as performance fees, which should come in at € 4.1m,based on Optoflex' fund size of € 1.3bn. As we assume 25% of performance fees to be paid out as fund managers'bonuses, we expect an EBIT contribution of € 5.3m in Q1. Next to WealthManagement, MLP should also continue to benefit from (1) the ongoing strongBanking business and (2) regulatory and market improvements in real estate: (1) ECB interest rates have not been cut in Q1 and ECB signals to not trimrates in the near future. Hence, interest income should remain high duringFY'24e (eNuW: € 69m) as elevated rates act with a full-year effect in '24 upside to our estimate should emerge, as our initially assumedaverage interest rate of 3.8% for FY'24 (Q1: 4.0%, Q2: 4.0%; Q3: 3.8% andQ4: 3.5%) seems conservative, as Q4'23 yielded an interest rate of 4.6%(annualized) and rates have been unchanged since then. (2) Investing in newly built real estate has become incrementally moreattractive for investors thanks to the recently passed'Wachstumschancengesetz', changing the depreciation regime from linear todegressive. This should support MLP's RE development business (focus onretirement homes) which can be brokered to MLP's above average wealthycustomers. This adds to slight upturn from low levels in the RE market,thanks to a decline in 10y fixed rate mortgages from 4.2% in Nov'23 to now3.6%. In sum, MLP benefits from three drivers at once and should start well intothe year. Hence, we reiterate our BUY recommendation and raise our PT to €12.00 (old: € 11.00), based on FCFY'24e can download the research here:For additional information visit our websiteContact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: NuWays AG - Equity ResearchWeb: Email: ...LinkedIn: Adresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.


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