Classification of NuWays AG to Multitude AG

Company Name:	Multitude AG
ISIN:	CH1398992755
Reason for the research:	Update
Recommendation:	Buy
from:	07.11.2025
Target price:	EUR 12.50
Target price on sight of:	12 months
Last rating change:
Analyst:	Frederik Jarchow / Julius Neittamo

Stable Q3 ahead // On track to overachieve guidance

Next Thursday, Multitude will publish Q3´25 figures. Overall, we expect profitability to come in very solid, thanks to the company’s improving loan book quality and diversified income streams. The company is clearly set to overachieve its already increased profit guidance. Here is what to expect in detail:

Group sales are seen up 3% yoy at € 67.7m (eNuW, 5% qoq). As we see Ferratum’s top-line to remain flattish, with -1% yoy, the uplift is seen to stem from the SME business (CapitalBox), with a 5% growth yoy (eNuW, 4% qoq), while Wholesale banking should grow strongly at 50% yoy (eNuW, +16% qoq), albeit from a still relatively low base of € 5.3m.

EBT is expected to come in at € 7.9m (eNuW, 27% yoy), driven mainly by the brokerage business, where we see the fee and commission income (net) with a strong € 2.7m, translating into a sequential increase of 7%. As a result, net profit is seen to come in at a solid € 6.9m. 

With that, Multitude should be well on track to over achieve its already increased FY25 net profit guidance of € 24-26m, as we are projecting net profit figures to come in at € 21m for 9M’25e. 

In the upcoming report, we will pay particular attention to the following:

• The overall profitability thanks to a strong brokerage business and a high quality loan book
• The consumer banking business (Ferratum) return to a growth path
• The progress in profitability for the SME (CapitalBox) and Wholesale Banking businesses

The brokerage business is of particular interest, as it has permited Multitude to diversify its income streams, without carrying incremental risks on its books. Here, Multitude earns commission income for providing compliance, licensing, and underwriting services to support Everest Finanse's loan origination. Thus far, the brokerage business has added a solid € 4.5m to the net operating income for H1’25, where we see the positive trend continuing.

In Q2’25, the excellent profitability was also driven by lower impairment levels, having decreased by an impressive 18.6%, from € 52.1m to € 42.4m. Multitude also impressed in Q2’25 with impaired loan coverage ratio coming in at 15.61%. Given this, we see further room for improvement in the already excellent profit margins.

In a nutshell, Multitude should continue on its growth path while delivering very strong profitability, on the back of a diversified and high quality business.

BUY with an unchanged PT of € 12.5 PT, based on our residual income model. Mind you that Multitude is one of our NuWays Alpha picks.

You can download the research here: multitude-ag-2025-11-07-previewreview-en-7dce0
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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