Q.beyond AG Projects Profitability Despite Sales Decline

NuWays AG has issued a "BUY" recommendation for q.beyond AG, with a 12-month target price of €1.30. Q1 2025 is set to reflect improvements in profitability, despite a projected 1.4% decline in sales to €46.5 million. The decrease is attributed solely to IFRS 15 accounting standards, which affect how certain sales are recorded.

Managed Services and a Consulting sector recovery are expected to enhance the gross margin, projected to rise by 3.6 percentage points year-over-year to 12%. Q1 EBITDA is also forecasted to improve by 27.6% to €2.5 million, driven by better offshoring ratios and increased consulting utilization.

The company aims to meet the FY25 guidance and is likely to achieve the higher end of the EBITDA target range of €12–15 million. Potential inorganic growth is foreseen, backed by a net cash position of €30 million, targeting sectors such as healthcare and energy.