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Original-Research: GFT Technologies SE - from Quirin Privatbank Kapitalmarktgeschäft
28.07.2025 / 15:49 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
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.
Classification of Quirin Privatbank Kapitalmarktgeschäft to GFT Technologies SE
| Company Name: |
GFT Technologies SE |
| ISIN: |
DE0005800601 |
| |
| Reason for the research: |
Update |
| Recommendation: |
Buy |
| from: |
28.07.2025 |
| Target price: |
32 |
| Last rating change: |
|
| Analyst: |
Sebastian Droste |
Mixed picture but mid-term targets remain intact
On July 23, GFT Technologies released its preliminary H1 2025 results and lowered its guidance for 2025. Revenue growth was weak (+2.8% yoy) and 2.0% below our expectation. The increase was mainly driven by organic growth (+6.0% yoy) and supported by strong demand in the Americas and APAC, particularly in Brazil, USA, Canada and Colombia, as well as by solid performance in the Insurance sector (+20.0% yoy) and Industry & Others (+11.0% yoy). Additional drivers included the expansion of the GenAI product Wynxx and the recent acquisition of Megawork. However, adverse currency effects (-4.0%), weak performance in Europe (-6.0% yoy) and especially the UK (-19.0% yoy), and a slight decline in the Banking sector (-2.0% yoy) weighed on revenues. The EBT margin declined from 7.0% to 4.3%, below our estimate of 5.4%. The margin decrease was mainly driven by FX headwinds, the absence of last year’s one-off gain, and restructuring measures in the UK and at GFT Software Solutions. The company lowered its revenue guidance to EUR 885m (previously: EUR 930m), 4.8% below our estimate, and now expects an adjusted EBIT of EUR 65m and EBT of EUR 45m, implying an EBT margin of 5.1% versus our estimate of 6.5%. The downgrade reflects FX headwinds and restructuring measures, while growth should be supported by AI initiatives, the Megawork acquisition and expansion in high-value services. We view the reaffirmed 2029 targets as supportive for the long-term investment case despite near-term challenges. We decrease our target price to EUR 32 (previously EUR 38) and confirm our Buy recommendation.
You can download the research here: GFT_TECHNOLOGIES_SE_20250728
For additional information visit our website: https://research.quirinprivatbank.de/
Contact for questions:
Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
|
2175504 28.07.2025 CET/CEST
Original-Research: GFT Technologies SE - from Quirin Privatbank Kapitalmarktgeschäft
28.07.2025 / 15:49 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS Group.
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.
Classification of Quirin Privatbank Kapitalmarktgeschäft to GFT Technologies SE
| Company Name: |
GFT Technologies SE |
| ISIN: |
DE0005800601 |
| |
| Reason for the research: |
Update |
| Recommendation: |
Buy |
| from: |
28.07.2025 |
| Target price: |
32 |
| Last rating change: |
|
| Analyst: |
Sebastian Droste |
Mixed picture but mid-term targets remain intact
On July 23, GFT Technologies released its preliminary H1 2025 results and lowered its guidance for 2025. Revenue growth was weak (+2.8% yoy) and 2.0% below our expectation. The increase was mainly driven by organic growth (+6.0% yoy) and supported by strong demand in the Americas and APAC, particularly in Brazil, USA, Canada and Colombia, as well as by solid performance in the Insurance sector (+20.0% yoy) and Industry & Others (+11.0% yoy). Additional drivers included the expansion of the GenAI product Wynxx and the recent acquisition of Megawork. However, adverse currency effects (-4.0%), weak performance in Europe (-6.0% yoy) and especially the UK (-19.0% yoy), and a slight decline in the Banking sector (-2.0% yoy) weighed on revenues. The EBT margin declined from 7.0% to 4.3%, below our estimate of 5.4%. The margin decrease was mainly driven by FX headwinds, the absence of last year’s one-off gain, and restructuring measures in the UK and at GFT Software Solutions. The company lowered its revenue guidance to EUR 885m (previously: EUR 930m), 4.8% below our estimate, and now expects an adjusted EBIT of EUR 65m and EBT of EUR 45m, implying an EBT margin of 5.1% versus our estimate of 6.5%. The downgrade reflects FX headwinds and restructuring measures, while growth should be supported by AI initiatives, the Megawork acquisition and expansion in high-value services. We view the reaffirmed 2029 targets as supportive for the long-term investment case despite near-term challenges. We decrease our target price to EUR 32 (previously EUR 38) and confirm our Buy recommendation.
You can download the research here: GFT_TECHNOLOGIES_SE_20250728
For additional information visit our website: https://research.quirinprivatbank.de/
Contact for questions:
Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main research@quirinprivatbank.de https://research.quirinprivatbank.de/
The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
|
2175504 28.07.2025 CET/CEST
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