NuWays AG Issues "BUY" Rating for Borussia Dortmund GmbH & Co KGaA

Recent research by NuWays AG has maintained a "BUY" recommendation for Borussia Dortmund GmbH & Co KGaA, with a target price of €5.50. This outlook follows a digital roadshow featuring BVB CFO Thomas Treß, highlighting the club's advantageous position amidst evolving structures in broadcasting rights, the UEFA Champions League (UCL) format, and sponsorship opportunities.

The forthcoming negotiation of Bundesliga broadcasting rights, with a prior deal valued at €4.4 billion, holds potential for stable or increased revenue, despite initial concerns of reduced values seen in other European leagues. This optimism is partly due to the abolition of the “No-Single-Buyer-Rule,” expected to heighten the bidding competition.

Adjustments to the UCL format are anticipated to boost earnings by at least 20%, with an increase in performance-based premiums. Additionally, the introduction of the Club World Cup (CWC) in 2025 is projected to provide a significant liquidity surge, although detailed financial impacts are yet to be disclosed.

On the sponsorship front, upcoming contract renewals and new international opportunities, particularly related to the CWC in the US, promise further growth. Moreover, Borussia Dortmund’s recent success in reaching the UCL quarterfinals has led to an upward adjustment in their net profit guidance, reinforcing confidence in the club’s financial health.

Borussia Dortmund’s stock currently trades at an attractive multiple of 0.9x EV/Sales, significantly below the peer average of 3.9x, reinforcing the "BUY" recommendation.