Original-Research: Lang & Schwarz AG (von NuWays AG): BUY
^
Original-Research: Lang & Schwarz AG - from NuWays AG
14.10.2026 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
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 Lang & Schwarz AG
Company Name: Lang & Schwarz AG
ISIN: DE000LS1LUS9
Reason for the research: Initiation
Recommendation: BUY
Target price: EUR 20
Target price on sight of: 12 months
Last rating change:
Analyst: Simon Keller
Trading the retail renaissance; INITIATE WITH BUY
The market is pricing Lang & Schwarz as if its story ended with Trade
Republic. We disagree. The payment for order flow (PFOF) ban and Trade
Republic's abrupt change in order routing and trading technology have reset
earnings, but not the franchise. What remains is a profitable
retail-market-making platform with proprietary technology, substantial
capital and a highly attractive Structured Products business. The focus
should now shift from the earnings lost to the quality and growth potential
that remain.
The moat was built trade by trade. 30 years of pricing and risk decisions
are embedded in L&S' models, technology and routines. Around 60% of its c.
100 employees work in trading or IT, while two data centres and EUR 207m of
capital including the fund for general banking risks provide reliability and
risk-bearing capacity. These capabilities support quotes on more than 50,000
securities and distribution through over 20 partners with access to more
than 25m retail clients. Smaller, less information-sensitive retail orders
create attractive economics. Together, this gives L&S a mature,
capital-backed platform that can monetise retail flow across products,
partners and market cycles.
Structured Products are set to become the profit engine. Already in FY25,
the segment generated EUR 55m, or 38%, of group trading result on less than 1%
of volume. Including Treasury, this equates to c. EUR 83 trading profit per
executed trade versus c. EUR 0.84 in TradeCenter. With TradeCenter economics
now reset, we expect Structured Products to account for the majority of
group earnings from H2 26 onward. Rapid automated issuance captures shifts
in retail demand, while wikifolio adds recurring fees of an estimated c. EUR
7m p.a. before performance fees.
Growth has several routes back. Only 38% of German adults hold investments,
well below Nordic markets. Germany already counts c. 5m investors below 40,
a sizeable cohort still at an early stage of wealth accumulation. As their
portfolios and experience grow, funded brokerage accounts should
increasingly translate into equity and leveraged-product activity. Orders in
structured securities at selected German venues grew at an 11% CAGR from
2015 to 2025, with leveraged products accounting for 96% of 2025 orders.
This decade-long expansion demonstrates a structural trend beyond isolated
volatility spikes, in our view. New partnerships and the planned
Multi-Market-Maker model offer additional growth potential, with our
estimates allowing for only a modest initial contribution pending greater
visibility.
Q3 2026 marks the clean starting point. H1 26 still reflects the former PFOF
regime and the historically large Trade Republic flow. From Q3 onward, the
PFOF ban and routing change are fully reflected, making FY27e the first
fully standalone year. Its yoy comparison will look weak due to the
exceptional H1 26 comparison, but against the annualised clean H2 26e base,
our FY27e estimates imply c. 7% growth in trading result and c. 33% growth
in adjusted net profit. As cost measures take full effect, FY27e should mark
the beginning of renewed earnings growth under the post-PFOF setup.
The de-risked earnings base deserves a new valuation. L&S trades at only
7.9x FY27e PER, versus peers at 10.3x. Our residual income model, based on EUR
193m of economic book value, supports our PT of EUR 20, implying c. 30%
upside. INITIATE with BUY.
You can download the research here:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=71d7dc88f437ee7311d037adf5ab4e84
For additional information visit our website:
https://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 Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++
---------------------------------------------------------------------------
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
View original content:
https://eqs-news.com/?origin_id=54bb0ed9-c797-11f1-9d22-0a083a71a9ab&lang=en
---------------------------------------------------------------------------
2415346 14.10.2026 CET/CEST
°