Original-Research: NFON AG (von NuWays AG): Buy

^

Original-Research: NFON AG - from NuWays AG

13.09.2024 / 09:00 CET/CEST

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

Group AG.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to NFON AG

Company Name: NFON AG

ISIN: DE000A0N4N52

Reason for the research: Update

Recommendation: Buy

from: 13.09.2024

Target price: EUR 11.70

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

CMD feedback: Mid-term outlook and insights into AI roadmap

On Wednesday, NFON held a virtual Capital Markets Day, where management

provided investors with insights into the recent botario acquisition and the

associated upcoming AI roadmap as well as a financial mid-term guidance.

Here are the key takeaways:

Well-filled AI pipeline: CTO Andreas Wesselmann gave a sneak preview into

NFON's upcoming AI projects. This includes among others a comprehensive AI

customer assistant, which is able to provide tailor-made solutions based on

customer needs as well as a chat bot solution with live sentiment analysis,

categorization and summarization, which is seen to be a perfect fit for

NFON's contact center solutions. Regarding the go-to-market, the botario

resources should speed-up the development process, which is why we expect

the new solutions to be available over the course of 2025e. In our view,

this should serve as a competitive edge in the highly fragmented market for

integrated business communication and thus drive ARPU's and top-line growth

going forward.

Up- and cross-selling potential from botario acquisition, especially for

larger customers in NFON's partner portfolio. Moreover, botario's is opening

new customer segments to NFON, given its strong position in highly regulated

industries like health or insurance.

DTS integration in full swing. Management confirmed that the synergies

arising from the integration of Deutsche Telefon Standard should become

visible soon, as the company is currently eliminating duplicate structures

in sales, marketing, HR, etc., which should allow for further profitability

improvements going forward.

Mid-term outlook: While the FY '24e guidance was confirmed, CEO Heider also

provided a mid-term outlook. Until 2027, the company aims to achieve a

double-digit top-line CAGR with recurring revenues accounting for >90% of

sales as well as an EBITDA margin of >15%. In our view, this should be well

achievable given the existing optimization potential as well as an improved

sales mix in connection with the new AI products. Moreover, management also

provided targets for botario, which is seen to grow at a >40% CAGR going

forward and achieve EBITDA margins of >30%.

Reiterate BUY with an unchanged EUR 11.70 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/30789.pdf

For additional information visit our website: www.nuways-ag.com/research

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

ﯯ뻻

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.

ﯯ뻻

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

1987455 13.09.2024 CET/CEST

°