AlsterResearch AG Update: Multitude SE - Excellent Q2/21 results

Multitude SE (Q2 results)   Financial Services MCap EUR 107m BUY PT EUR 10.00 (+100% potential)   Multitude reported excellent Q2/21 results. Read here why we believe that the company has passed the inflection point with further top- and bottom-line growth on the plate.   Read

 

What’s it all about?

Multitude has reported very solid figures, with sales and earnings already growing sequentially – a development which we had anticipated not before the second half of 2021. That said, Multitude’s strategic repositioning seem to bear fruit, which marks a clearly positive signal for the equity story in our view. In addition, management has confirmed its FY 2021 EBIT outlook of EUR 20m (eAR: EUR 18.7m). Sound half year results therefore puts the company on track of achieving these goals. Supported by all segments the loans to customers increased by 23.3% yoy to EUR 412.8m – a solid base for revenue generation in future periods. Consequently, we value the Q2 results as a sign that the pandemic has been left behind and that the new strategy is starting to bear fruit with all signs pointing towards profitable growth. Hence, we confirm our BUY rating and leave our target price unchanged at EUR 10.00.