Put companies on watchlist
Multitude SE
ISIN: MT0002810100
WKN: A40G1Q
About
Company Snapshot
New: Enable Investor Alerts
Be informed about new publications
New: AI Factsheet

Corporate News meets AI! 
Content analysis and summary

EN GIF 300X250

Multitude SE · ISIN: MT0002810100 · EQS - Analysts (18 News)
Country: Germany · Primary market: Malta · EQS NID: 21041
14 October 2024 09:01AM

Buy


Original-Research: Multitude SE - from NuWays AG

14.10.2024 / 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 Multitude SE

Company Name: Multitude SE
ISIN: MT0002810100
 
Reason for the research: Update
Recommendation: Buy
from: 14.10.2024
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Frederik Jarchow

Sensible strategic acquisition of stake in Lea Bank ASA

Topic: Multitude announced to have acquired a 9.9% stake in Lea Bank ASA with an option to acquire further 8.7%, once having received the approval from the regulatory authorities in Norway and Sweden. Here are our key takeaways:
  • Complementary risk profile as good strategic fit. Lea Bank is active in the consumer lending space with a strong regional footprint across Nordic countries and Spain. As Lea Bank is offering prime loans to consumers, the risk profile is significantly lower compared to Multitude´s consumer lending segment “ferratum” and is hence diversifying the business. Thanks to a business model that is similar (consumer lending) but different (risk profiles), we see certain synergy potentials, especially in the field of (1) referrals/product cooperations, (2) joint development projects and (3) cross-selling. Still, for now the acquisition is only a financial investment that is not being consolidated.
  • Attractive financial profile. With a loan book of c. € 587m (as of H1´24 mainly financed with customer deposits at moderate interest rates), Lea Bank should generate some € 48m in net interest income and € 55m in total income in FY24e (assuming similar sequential growth as in H1), while provision for loan losses should amount to only c. € 30m, due to the relatively low risk profile, with low default rates. The lean cost structure, should allow Lea Bank to achieve an EBT of € 7-8m that could result in a nice dividend. In light of the profitable, growing business model with a lower risk profile, the paid valuation of c. 13x PE´24e is appropriate in our view.
Apart from that, Multitude is seen to be fully on track to come close to its EBIT guidance of € 67.5m (vs eNuW: € 61.4m), thanks to moderate growth especially in the SME and Wholesale banking segment, further improved risk management visible in declining impairments and ongoing tight cost control resulting in stable OPEX.

As the stock still is undebatable cheap for a growing, highly profitable, resilient and dividend paying company, trading at only 4x PE´25, we reiterate BUY with an unchanged PT of € 12 PT, based on our residual income model. With that, Multitude remains one of our NuWays Alpha picks.

You can download the research here: http://www.more-ir.de/d/31041.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
++++++++++
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.
++++++++++


The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com


2007335  14.10.2024 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=2007335&application_name=news&site_id=boersengefluester_html
Visual performance / price development - Multitude SE
Smart analysis and research tools can be found here.

This publication was provided by our content partner EQS3.

EQS Newswire
via EQS - Newsfeed
EQS Group AG ©2024
(DGAP)
Contact:
Karlstraße 47 D-80333 München
+49 (0) 89 444 430-000

 

SMART * AD
EN GIF 970X250

P R O D U C T   S U G G E S T I O N S

The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.


The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.

If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.

For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.


1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.