THE NAGA GROUP AG Gains Approval for Merger with CAPEX

NuWays AG has released an updated research report on THE NAGA GROUP AG, maintaining a "Buy" recommendation with a target price of EUR 1.20. The update follows the recent extraordinary general meeting where NAGA received overwhelming approval for its merger with CAPEX, a pivotal move expected to drive significant growth.

For FY24, NAGA anticipates sales of €77.8 million, driven by 15.9 million transactions and an average revenue per trade of €4.9. The merger is expected to enhance trading figures and unlock cross-selling potentials. Active customers are projected at 46,000 with trading volumes reaching €340 billion.

EBITDA is forecasted at €10.1 million, factoring in expected synergy effects. Operational expenses are projected to reduce by €8.5 million. Although the merger may appear dilutive for existing shareholders, the long-term growth prospects are substantial. Management aims for USD 250 million in sales by 2026 with a 40% EBITDA margin, though NuWays provides a more conservative estimate.

The revitalization of customer activity in the brokerage market coupled with merger-driven synergies highlights considerable growth opportunities for THE NAGA GROUP AG.