NuWays AG Maintains 'Buy' Recommendation for 123fahrschule SE

NuWays AG has maintained its 'Buy' rating for 123fahrschule SE, with a target price of €7.20. The classification follows the release of preliminary H1 2024 sales and EBITDA figures. H1 sales reached €11.0 million, demonstrating a year-over-year growth of 5%. However, H1 EBITDA declined to €0.1 million from €0.2 million last year due to accounting changes. Adjusted EBITDA stood at €0.5 million, implying a 4.5% margin.

The company aims for an ambitious EBITDA target of €0.5 million for FY 2024, adjusted to €1 million. Management plans to expand by opening new locations in Berlin, Cologne, and Hamburg. Financing options include a potential 10% cash capital increase. The reintroduction of online theory lectures and the scaling up of the driving simulator business from 2025 are expected to boost growth.

123fahrschule's in-house driving instructor education centers position it for organic growth, countering industry-wide succession issues. The 'Buy' rating is supported by a discounted cash flow valuation.