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.

Original-Research: Netfonds AG (von NuWays AG): Kaufen

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 GSRŽs AuM by EUR 140m to EUR 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 EUR 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 EUR 25.1bn
and gross sales of EUR 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 theinsurance broker market that is, in contrary to the investment advisermarket, still highly fragmented. Thanks to finfire, the selling andmanaging of insurance products is much easier unlocking enormouscross-selling potentials, as the already onboarded investment adviser canadditionally offer a wide range of insurance products to its customers.finfire hence remains the companyŽs key mid- to long term growth andscalability driver. The expected strong organic growth momentum is expectedto be accompanied by further value-accretive M&A deals that has to come atreasonable price, as management underlined during the virtual roundtable.

Overall, we see Netfonds well on track to reach its mid-term target of EUR59m net sales (vs eNuW: EUR 59m) and EUR 23m EBITDA (vs eNuW: EUR 20m) by FY26.

BUY with a new PT of EUR 74.00 (old: EUR 73.00), based on DCF.

You can download the research here:http://www.more-ir.de/d/30169.pdfFor additional information visit our websitewww.nuways-ag.com/research.

Contact for questionsNuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: [e-mail]: https://www.linkedin.com/company/nuwaysagAdresse: 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.++++++++++

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The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.

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