Classification of NuWays AG to Borussia Dortmund GmbH & Co KGaA

Company Name:	Borussia Dortmund GmbH & Co KGaA
ISIN:	DE0005493092
Reason for the research:	Update
Recommendation:	BUY
from:	07.08.2024
Target price:	EUR 5.50
Last rating change:
Analyst:	Philipp Sennewald

Promising additions but still room for improvement
Topic: As we are in the midst of the summer transfer window, we want to take the opportunity to have a look on BVB’s first squad additions and provide a first preview on the upcoming season.

Only two weeks after the bitter loss (0-2) in the UCL final against Real Madrid, management started the preparations for the next season. In a first step, the club decided to part ways with head coach Edin Terzic, who led the team to bespoke final and almost won the national championship the year before. As new head coach, the club appointed former player Nouri Sahin, who already served as assistant coach since January. Prior to this, Sahin gained first coaching experience in the Turkish league at Antalyaspor. We expecxt his playing style to be more dominant based on a controlled buil-up, but it remains difficult for now to assess his qualities exactly.

On top of this, BVB so far has been quite active on the transfer market, as they added four key players to their 2024/25 squad. With Waldemar Anton (central defender) and Serhou Guirassy (forward), the club acquired two key players from last season’s runners-up Stuttgart. Especially Guirassy, who made 30 goal contributions (therof 28 goals) last season, should become a valuable addition to the BVB offense. Moreover, German international Pascal Groß (central midfield) and Yan Couto (fullback) join the club from Premier League sides Brighton and ManCity.

With this the club should have more than compensated for the departures of veteran players like Hummels, Reus and Füllkrug as well as Maatsen and Sancho, whose loans ended in June. Yet, we expect BVB to remain active on both sides until the transfer window closes at the end of August, as management might be on the look for another offensive addition. According to transfermarkt.de, BVB spent € 47.5m on the signings of Guirassy, Anton and Groß as well as € 4m for the loan of Couto, while receiving € 27m for the disposal of Füllkrug on the other hand.

As of now, the team already looks improved compared to last season and should therefore be able to fight for a place in the Top-3 of the Bundesliga, which would qualify them for the 25/26 UCL season. Moreover, the club should be in a good position for another competitive run in the Champions League (eNuW: Round of 16).

Reiterate BUY with an unchanged € 5.50 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/30391.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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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
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