AlsterResearch Update: Multitude - Revenue growth intact, EBIT above full year

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What’s it all about?

Multitude has reported a solid quarter, with encouraging performance across all segments. In addition to increased revenues and earnings, the company achieved further milestones, like the placement of a perpetual bond, which improved the balance sheet structure significantly. As a first mover in the digital finance world, the company brings years of experience to steadily build its own ecosystem. We perceive Multitude to be well on track to achieve profitable growth in the upcoming years, while current valuation does not reflect this potential (P/E 23E of 5.4x). After nine-month, annual EBIT target of c. EUR 20m is almost achieved (reported EBIT EUR 19.1m). Backed by this strong development, we upgrade our estimates and expect a higher margin to kick in (13.6% eAR 2024). Offering more than 130% upside, we confirm our BUY rating with a slightly increased price target of EUR 11.10 (old EUR 10.00).