Original-Research: MLP SE (von NuWays AG): Kaufen
Source: EQSClassification of
Company
ISIN: DE0006569908
Reason for the research: Update
Recommendation: Kaufen
from:
Target price:
Target price on sight of: 12 Monaten
Last rating change:
Analyst:
RS Feedback: attractive value for money
On Monday, we hosted a roadshow with CEO
Growth in Wealth Management: The overall growth in wealth across MLP's mass
affluent, often highly
educated client base should lead to higher demand for wealth management
consultancy. This growth in wealth should stem from (1) the rise of the
customers' income over their expected life cycle, (2) a wave of
inheritances to come in the next 5-10 years in
Demographic change in
High sales quality: With 68% of revenues being recurring, MLP's sales quality has improved substantially over the last years (30% in 2005). Moreover, MLP also does not rely on one revenue pillar anymore, but shows multiple, negatively correlated revenue streams (see p. 2)
Light at the end of the real-estate tunnel: In the last 3 years, MLP's real estate business experienced a perfect storm, first with the COVID related postponements of projects (development) and secondly with the quick interest rate hike leading to a near standstill in brokerage and development. Now, the trough should have been reached and management sees light at the end of the tunnel, as the market seems to be have gotten used to current interest rates.
M&A war chest filled: Out of the € 190m net cash position, € 100m can be used for acquisitions. However, current prices are still to high in order to acquire value-accretive targets for the industrial broker segment. Thus, MLP stays is ready and open for acquisitons should the opportunity arise.
The impressions given by management underpin our positive view. At current valuation, the stock offers an attractive value for money proposition. BUY with unchanged PT of € 12.00, based on FCFY'24e.
You can download the research here:
http://www.more-ir.de/d/29581.pdf
For additional information visit our website
www.nuways-ag.com/research.
Contact for questions
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148
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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.