Original-Research: THE NAGA GROUP AG - from NuWays AG 20.09.2024 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.
20.09.2024 - 09:01:28Original-Research: THE NAGA GROUP AG (von NuWays AG): BUY
Original-Research: THE NAGA GROUP AG - from NuWays AG 20.09.2024 / 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 THE NAGA GROUP AG Company Name: THE NAGA GROUP AG ISIN: DE000A161NR7 Reason for the research: Update Recommendation: BUY from: 20.09.2024 Target price: EUR 1.40 Last rating change: Analyst: Frederik Jarchow New game changing cooperation with Telegram; chg. Topic: Yesterday, the GroupŽs CEO Octavian Patrascu presented its growth plans for NAGA during our roundtable. Further, he announced to have entered into a cooperation with the messenger Telegram. Our key takeaways: First-ever fully integrated trading app within Telegram. As a first mover, NAGA is the first broker that natively integrated its full trading offering into the Telegram ecosystem. Customers now can do the whole onboarding and KYC process without leaving the Telegram app. Further, onboarded customer can use all the features of the NAGA Super APP within the Telegram app. In our view, the integration of the NAGA SuperApp into the Telegram ecosystem with its c. 950m users is a bold move, that should massively increase the reach of NAGA and lower entry barriers for potential new customers. As a result, number of new customers should increase significantly. Further customer activity should increase as well, as receiving a trading signal and placing a trade is no longer separated in two different apps. At least not from a userŽs perspective. Promising growth ambitions unveiled. Similar to the recently announced cooperation with BVB, the cooperation with Telegram is another important milestone on NAGAŽs growth path. According to its internal plan, NAGA expects to grow to EUR 129m in sales until FY26e, achieving some EUR 31m EBITDA. This is clearly above our conservative estimates of EUR 103m in sales and EUR 21m EBITDA, but not out of reach. Keep in mind that an incremental positive change in the sentiment could have an enormous effect on the P&L of NAGA. The leverage of the joint Group could even scale this effect. For FY24, we are anticipating EUR 71m in sales and an EBITDA of EUR 8.6m (12% EBITDA margin), slightly below the internal plan on the topline (EUR 75m) and above on the bottom line (EUR 8.7m). Obviously, investment into future growth could burden margins in the short-term. Overall, the revitalization of customer activity in the brokerage space, paired with cross-selling and synergy effects arising from the merger and important strategic cooperations should fuel NAGAŽs growth going forward. BUY with a new PT of EUR 1.40 based on DCF You can download the research here: http://www.more-ir.de/d/30825.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 --------------------------------------------------------------------------- 1991999 20.09.2024 CET/CEST