Original-Research: MLP (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:
Dry spell's over: Comeback of performance fees; chg. est.
For the first time since Q4 2021, MLP looks set to record performance fees of € 7m in Q1, as capital markets have developed favourably, pushing FERI's funds to new high water marks. In detail:
FERI's largest fund, the EquityFlex, surged 11.5% during Q1, outperforming
the benchmark by 1.5pp (S&P500: +10% in Q1). Performance based compensation
amounts to 15% of that outperformance and given EquityFlex' volume of €
1.36bn (
The second largest fund (OptoFlex) closed 6.1% above its old ATH, exceeding the € STR of 3.9% (Optoflex' Benchmark) by 2.1pp. MLP also receives 15% of that outperformance as performance fees, which should come in at € 4.1m, based on Optoflex' fund size of € 1.3bn.
As we assume 25% of performance fees to be paid out as fund managers' bonuses, we expect an EBIT contribution of € 5.3m in Q1. Next to Wealth Management, MLP should also continue to benefit from (1) the ongoing strong Banking business and (2) regulatory and market improvements in real estate:
(1)
(2) Investing in newly built real estate has become incrementally more attractive for investors thanks to the recently passed 'Wachstumschancengesetz', changing the depreciation regime from linear to degressive. This should support MLP's RE development business (focus on retirement homes) which can be brokered to MLP's above average wealthy customers. This adds to slight upturn from low levels in the RE market, thanks to a decline in 10y fixed rate mortgages from 4.2% in Nov'23 to now 3.6%.
In sum, MLP benefits from three drivers at once and should start well into the year. Hence, we reiterate our BUY recommendation and raise our PT to € 12.00 (old: € 11.00), based on FCFY'24e.
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http://www.more-ir.de/d/29305.pdf
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www.nuways-ag.com/research.
Contact for questions
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