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Original-Research: Swissnet AG - from NuWays AG
06.10.2025 / 09:00 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 NuWays AG to Swissnet AG
Company Name: Swissnet AG
ISIN: CH0451123589
Reason for the research: Update
Recommendation: BUY
from: 06.10.2025
Target price: EUR 20.00
Target price on sight of: 12 months
Last rating change:
Analyst: Philipp Sennewald
H1 shows strong growth as SaaS momentum drives profitability
Topic: Swissnet delivered a strong set of H1 2025 results, with revenues
almost doubling yoy and adj. EBITDA rising significantly. In detail:
H1'25 sales increased by 91% yoy to CHF 11.3m (eNuW: CHF 11.6m). The
increase was mainly driven by the first-time consolidation of Swissnet ICT
and Lokalee, but also by organic growth across the SaaS and Infrastructure
segments. Particularly, SaaS revenues benefited from continued customer wins
in retail and hospitality, while Infrastructure revenues reflected a solid
pipeline conversion, supported by the strong recurring maintenance business.
With recurring revenues accounting for 77% of total revenues, Swissnet
continues to enjoy high visibility and stability in its top line.
On the profitability side, adj. EBITDA doubled to CHF 2.3m (eNuW: CHF 2.5m;
reported EBITDA: CHF 1.2m), corresponding to a margin of 20%. This
improvement reflects both, operating leverage and synergies materializing
from the merger, as well as a disciplined cost base despite the ongoing
integration process, thus demonstrating the company's ability to translate
growth into bottom-line profitability. Importantly, the SaaS segment
continues to drive margins thanks to its high scalability and low
incremental costs, while Infrastructure is gradually contributing more
stable cash flows.
Looking ahead, management reaffirmed its positive outlook for FY25,
highlighting strong momentum, ongoing integration progress and improving
profitability as key drivers. In the most recent management presentation,
guidance was specified at CHF 28-30m in revenues (eNuW: CHF 26.9m reported)
and CHF 5.5-6m in adj. EBITDA (eNuW: CHF 5.9m) on a pro-forma basis
(Swissnet consolidated since January). In our view, this should be well in
reach given the strong H1 baseline as well as continuous efficiency gains.
Moreover, the ongoing integration of Swissnet ICT and Lokalee is expected to
be completed by year-end and is seen to unlock additional cost synergies of
around CHF 1.2m from FY26 onwards. Furthermore, cross-selling opportunities
between Swissnet's infrastructure business and Lokalee's AI concierge
solution in hospitality are already emerging, particularly in the MENA
region.
Overall, the release confirmed our view on the case, as Swissnet continues
to deliver on both growth and profitability while steadily executing its
integration agenda. In fact, we see the combination of high growth,
improving margins and rising cash conversion as strong validation of the
equity story, which is seen to fully unfold from FY26e onwards.
In light of the current valuation of 4.7x EV/EBITDA and 12% adj. FCFY for
FY26e, shares remain highly attractive in our view. We therefore confirm BUY
with an unchanged PT of EUR 20 based on DCF.
You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=879565c637a0a7776f8f9d5c316ebae6
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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