Classification of NuWays AG to 123fahrschule SE

Company Name:	123fahrschule SE
ISIN:	DE000A2P4HL9
Reason for the research:	Update
Recommendation:	BUY
from:	20.10.2025
Target price:	EUR 7.40
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Ministry proposal clears the way - 123f seen to benefit most

The German Ministry of Transport published its long-awaited proposal to make obtaining a driving licence more affordable, confirming a fundamental reform of driving school training. Crucially, the paper explicitly enables the full digitalisation of theory lessons by abolishing mandatory classroom teaching and room requirements, while simulators will be formally integrated into the practical training and can even replace parts of mandatory special drives. In addition, bureaucracy will be reduced, documentation obligations simplified, and the practical test will be shortened to the European minimum of 25 minutes. These measures aim to lower costs for students, improve efficiency for schools and increase competition via more transparency. Legal implementation is targeted for H1 2026, in line with previous indications.

In our view, this marks a structural inflection point for 123f as it fully confirms the company’s strategic direction. 123f has been preparing for exactly these changes over the past two years, investing in its digital platform, simulator infrastructure (via the Foerst acquisition) and process automation. With online theory, 123f can significantly scale capacity without additional classrooms and reach a wider catchment area, driving higher sales per branch and superior margins. The integration of simulators into mandatory training should unlock the currently delayed demand, especially as customers were waiting for legal clarity. As stated in our last update, this should lead to catch-up effects from FY26e onwards. Moreover, lower mandatory drives and digital theory allow 123f to offer significantly cheaper licences with at least stable margins, supporting market share gains in its core regions.

The reform also strengthens 123f’s competitive moat: smaller peers lacking digital capabilities or financial resources to invest in simulators will struggle to comply, while 123f is already fully set up. Combined with its integrated driving instructor training and largest branch network in Germany, the company remains in pole position to benefit once the reform comes into force.

All in all, the ministry’s proposal removes the key bottleneck that has been holding back simulator demand and confirms 123f’s strategic roadmap. We see this as a major medium-term catalyst that should accelerate growth, improve margins and unlock significant operating leverage. With an undemanding valuation and clear regulatory tailwind, the investment case strengthens further.

We hence reiterate our BUY rating with an unchanged PT of € 7.40 based on DCF.

You can download the research here: 123fahrschule-se-2025-10-20-update-en-51e8c
For additional information visit our website: https://www.nuways-ag.com/research-feed

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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