Original-Research: NFON AG (von NuWays AG): Buy
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Original-Research: NFON AG - from NuWays AG
13.09.2024 / 09:00 CET/CEST
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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
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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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1987455 13.09.2024 CET/CEST
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