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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.
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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
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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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1991999 20.09.2024 CET/CEST
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