Multitude: Strengthening its platform while competitors suffer – Remains a BUY

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Multitude has invested in a 4-year bond of FinTech Cream Finance Holding. Cream Finance's business model is largely comparable to Multitude’s business activities. The company provides unsecured consumer loans online, ranging from EUR 100 for a month up to EUR 10,000 for 5 years in different countries globally. This transaction is expected to be just the first step in the potential cooperation as 1) the companies' customer groups are complementary, 2) the companies largely serve different markets, and 3) technological know-how transfer could strengthen both companies. In our point of view, management has done its homework in the past by reaching a stable cost base, refinancing the group, and strengthening its digital platform approach. With limited impact on its P&L for the moment, our assumptions remain untouched. All in all, we see the investment case fully intact and reiterate our BUY rating with an unchanged target price of EUR 11.10.

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