Analysis Update: Multitude SE Recommended as "Buy" by NuWays AG

NuWays AG recently updated its research on Multitude SE, affirming a "Buy" recommendation with a revised target price of €12, up from previously €10. This optimism is backed by strong FY23 results and an anticipated robust FY24, guided by Multitude management to achieve an EBIT of €67.5m. Sales for FY23 hit €230.5m, marking a 9% year-over-year growth, with a particularly strong increase in the net loan book to €636m. EBIT grew by 45% to €45.5m, slightly surpassing estimates.

This positive performance is attributed to a combination of growth in all business segments, efficient operational expenses management, and a sizable net loan book enlargement. Multitude's FY24 outlook remains ambitious, leveraging on continued topline growth and operational efficiencies. The report underlines the company's consistent ability to meet its guidance over the past three years and points to the undervaluation of Multitude's stock despite its growth trajectory and profitability.

Given these insights, NuWays AG continues to list Multitude as one of its Alpha picks for FY24, highlighting its potential for investment despite current undervaluation. This analysis underscores the resilience and growth potential of Multitude SE in the financial sector.