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Original-Research: GFT Technologies SE - from NuWays AG
06.03.2026 / 09:00 CET/CEST
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Classification of NuWays AG to GFT Technologies SE
Company Name: GFT Technologies SE
ISIN: DE0005800601
Reason for the research: Update
Recommendation: BUY
Target price: EUR 32
Target price on sight of: 12 months
Last rating change:
Analyst: Simon Keller
Momentum improving again, chg.
GFT's FY'25 prelims indicate improving growth momentum, sequential margin
recovery and a clear positioning as an AI enabler, supporting our BUY
recommendation.
* Q4 25 fx-adj. sales grew 7% yoy to EUR 233m (eNuW: EUR 229m, eCons: EUR 230m),
driven by growth in the Americas (US: +17% yoy in FY, Brazil: +28%,
Colombia: +19%) and including a c. 2pp inorganic growth contribution
from Megawork.
* Q4 25 adj. EBIT came in at EUR 21.9m, c. 13% ahead of the implied guidance
(EUR 19.5m; eNuW: EUR 18.3m), down c. 9% yoy mainly due to the weak UK unit,
which likely remained unprofitable in Q4. The adj. EBIT margin arrived
at 9.4%. While still below last year's level (also see p.2), this marks
a sequential improvement of +2.2pp qoq.
* The outlook into 2026 assumes 5% yoy growth to EUR 930m, in line with our
expectations (eNuW: 3.3% organically, 1.6% inorganic from the Megawork
acquisition closed in Sep'25). Peers have guided similarly, supporting
the credibility of this outlook. For example, Capgemini issued a 2026
organic growth outlook of 1.5-4% yoy, despite being also exposed to less
dynamic growth sectors (e.g. Retail). At the same time, the adj. EBIT
margin is set to remain stable yoy at 7.6%, according to GFT (eNuW:
7.3%), as the weak UK unit continues to mask the stronger underlying
group performance.
Meanwhile, GFT's positioning as an AI enabler is highlighted by its Wynxx
platform, which is built on top of the newest AI models from Anthropic
(Claude), OpenAI and Google (Gemini). Anthropic's recently announced COBOL
modernisation tool, which triggered market concerns, can thus be directly
embedded into GFT's work processes via these platforms. Importantly, these
tools continue to require operators and, knowing how to best utilise them,
GFT looks set to be this orchestrating entity. As a consequence of new AI
tools, modernisation projects clear ROI hurdles, become less risky and
faster to execute. With approx. 75% of banks still running on legacy systems,
there remains a sizeable market opportunity, expected to result in a market
CAGR of c. 18% into 2030 (source: Mordor Intelligence).
Market momentum is indeed on GFT's side. The company's FY'25 fx-adj. sales
improved c. 11% yoy, when excluding the UK unit, which had been restructured
in H2 25, following what appear to have been largely idiosyncratic issues
(UK management was replaced during restructuring).
In sum, GFT's Q4 prelims de-risk the near-term, in our view: Growth is
re-accelerating, margins are improving sequentially, and the 2026 outlook
looks achievable even with the UK still acting as a drag (eNuW: FY'26 sales
-12% yoy). As such, we continue to see the current valuation as discounting
an overly bearish scenario on structural demand. BUY, PT of EUR 32, on DCF.
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NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
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analysierten Unternehmen befindet sich in der vollständigen Analyse.
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