Borussia Dortmund's Financial Performance and Outlook

NuWays AG has issued a "Buy" recommendation for Borussia Dortmund GmbH & Co. KGaA, setting a target price of €5.50 within 12 months. In Q1, Dortmund's sales rose by 4.9% to €107 million, driven by increases in advertising and TV marketing revenue. However, merchandising sales saw a significant decline of 36%, largely due to a lack of special jersey sales compared to the previous year.

Despite stronger top-line figures, Borussia Dortmund's EBITDA fell to €25.7 million, a significant drop from the previous year's €79.4 million. This decrease is mainly attributed to reduced transfer income, with key transfers such as Jude Bellingham impacting financial figures.

Looking ahead, management forecasts sales of €503 million and an EBITDA target between €110-120 million for the fiscal year 2023/24. The club's performance in the Bundesliga has been mixed; however, its Champions League campaign remains promising, with potential for progression to the knockout stages.