Original-Research: Multitude SE (von NuWays AG): Buy

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Original-Research: Multitude SE - from NuWays AG

11.03.2025 / 09:01 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to Multitude SE

Company Name: Multitude SE

ISIN: CH1398992755

Reason for the research: Update

Recommendation: Buy

from: 11.03.2025

Target price: EUR 12.00

Target price on sight of: 12 months

Last rating change:

Analyst: Frederik Jarchow

Bond successfully placed // Stake in Lea Bank increased; chg

Topic: Last week, Multitude announced to have successfully placed a EUR 25m

Tier 2 bond via its subsidiary Multitude bank. Multitude has also further

increased its stake in Lea Bank to 20.9% (initial stake was 9.9%). In

detail:

Tier 2 bond placement to strengthen capital base and to fulfil Tier 2

capital requirements. The conditions (pricing of 99% of the aggregate

principal amount and a coupon of 3 months EURIBOR plus 11.00% p.a.) are not

exactly favorable, as it is the first bond with that size placed via

Multitude bank but should improve with future potential bond placements

through Multitude bank. Importantly, the proceeds strengthen the capital

base of the bank and give the Group more flexibility when it comes to growth

and seizing attractive opportunities.

Higher stake in Lea Bank makes future cooperations more likely. After the

approval from the Swedish Financial Authority, Multitude Bank increased its

stake in Lea Bank to 20.9%, by executing another five share purchase

agreements. With that Multitude Bank strengthens its strategic foothold in

the Nordic consumer finance market and execute on its long-term growth

strategy through organic expansion, partnerships, and acquisitions. Further,

it increases synergy potentials, such as 1) referrals/product cooperations,

(2) joint development projects and (3) cross-selling between both banks.

Still, for now the acquisition is only a financial investment that is

expected to be partially consolidated. Importantly potential revenues from

Lea bank (via dividends/consolidation) are not reflected in the guidance.

Looking at current trading (not considering direct positive effects from Lea

Bank), we see Multitude fully on track to achieve its guidance: We expect

moderate yoy growth on both top and bottom line (eNuW for Q1´25: EUR 71m sales

and EUR 5.2m net income). That said, the Group's net income (including

contributions from Lea Bank) should come in clearly above the guidance for

FY25 of EUR 23m. Tailwinds are seen to come from lowering interest expenses

for customer deposits that should have peaked in Q3´24.

Given that the company is still trading at 4.8x PE´25, despite the strong

growth, the resilience and the positive outlook, we reiterate BUY with an

unchanged PT of EUR 12, based on our residual income model. Multitude remains

a NuWays Alpha pick.

You can download the research here: http://www.more-ir.de/d/31944.pdf

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2098452 11.03.2025 CET/CEST

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