Original-Research: GFT Technologies SE (von Quirin Privatbank Kapitalmarktges...

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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.

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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 (.8% yoy) and 2.0%

below our expectation. The increase was mainly driven by organic growth

(.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 (.0% yoy) and Industry & Others

(.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:

https://eqs-cockpit.com/c/fncls.ssp?u=fad61e5ef53c20522eda2ad2ce19f58e

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/

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2175504 28.07.2025 CET/CEST

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