Original-Research: Netfonds AG (Von Nuways AG)

(MENAFN- EQS Group) Original-Research: Netfonds AG - from NuWays AG Classification of NuWays AG to Netfonds AG Company Name: Netfonds AG ISIN: DE000A1MME74 Reason for the research: Update Recommendation: Kaufen from: 09.07.2024 Target price: EUR 74.00 Target price on sight of: 12 Monaten Last rating change: Analyst: Frederik Jarchow Reassuring roundtable call & value-accretive transaction; chg Topic: During last week's digital roundtable, hosted by us, the CFO Peer Reichelt provided a business update as well as with a promising outlook for the remainder of the year and beyond. Key takeaways: Value-accretive M&A transaction. The fund initiator GSR GmbH, a subsidiary of Netfonds, acquired 80% of the outstanding shares of another, not named fund initiator, increasing GSR ́s AuM by € 140m to € 330m. The acquired fund initiator should have a positive effect on the Groups EBITDA to the tune of c. 300-600k (eNuW) in 2024e. We expect that Netfonds paid some € 2-3m (eNuW), making it an attractive acquisition. With the value-accretive deal, Netfonds continued its growth and scale-path. Strong H1 figures ahead: After the record Q1 figures with AuC of € 25.1bn and gross sales of € 56m, stock markets have reached new all-time highs in Q2, providing confidence that Netfonds should have continued organic growth also in Q2. That, paired with 1) value accretive smaller transactions (i.e. MFK and Comfort Finance) for very reasonable prices (eNuW: 4-8x EBITDA) for its advisor network VB-Select, 2) the initiation of an own money market fund and 3) the acquisition of and umbrella in Luxembourg, should have further driven top-line and bottom-line (thanks to cross-selling and synergy effects). Consolidation of the insurance brokerage market in full swing. The Groups proprietary, 360° finfire platform is seen to fuel consolidation of the insurance broker market that is, in contrary to the investment adviser market, still highly fragmented. Thanks to finfire, the selling and managing of insurance products is much easier unlocking enormous cross-selling potentials, as the already onboarded investment adviser can additionally offer a wide range of insurance products to its customers. finfire hence remains the company ́s key mid- to long term growth and scalability driver. The expected strong organic growth momentum is expected to be accompanied by further value-accretive M&A deals that has to come at reasonable price, as management underlined during the virtual roundtable. Overall, we see Netfonds well on track to reach its mid-term target of € 59m net sales (vs eNuW: € 59m) and € 23m EBITDA (vs eNuW: € 20m) by FY26. BUY with a new PT of € 74.00 (old: € 73.00), based on DCF. You can download the research here: For additional information visit our website Contact for questions NuWays AG - Equity Research Web: Email: ... LinkedIn: 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. ++++++++++ -------------------transmitted by 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.


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