Original-Research: Multitude AG (von NuWays AG): BUY 
Di, 27.01.26 09:00· Quelle: dpa-AFX

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Original-Research: Multitude AG - from NuWays AG

27.01.2026 / 09:00 CET/CEST
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Classification of NuWays AG to Multitude AG

     Company Name:                Multitude AG
     ISIN:                        CH1398992755

     Reason for the research:     Update
     Recommendation:              BUY
     Target price:                EUR 11
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Julius Neittamo

FY26 outlook: Margin expansion set to continue

Following a resilient performance in the first 9 months of FY25, we remain
upbeat about Multitude for FY26. With their Q3'25 report release, management
delivered a convincing CMD presentation, giving a strong outlook for the
years to come. Multitude also recently announced that Fitch Ratings had
affirmed Multitude's long-term issuer default rating at 'B+' with stable
outlook, while upgrading the company's standalone credit profile to 'bb-'
from 'b+' and lifting subsidiary Multitude Bank PLC to 'BB-'. Senior
unsecured notes remain at 'B+' (RR4), with subordinated hybrid notes at
'B-'/'RR6'. This upgrade reflects the long-term improvement in loan book
quality, which could help lower funding costs. While we wait for the Q4'25
preliminary results, which will be released on March 12, we hereby publish
our outlook for FY26.

Our outlook for FY26 is optimistic, yet cautious. On top line, we model
interest income (sales) to land at EUR 261m for FY26, or +4.6% yoy (eNuW).

Last year, 9M'25 saw a decrease in sales of 3.8% yoy, mainly driven by two
factors: 1) divestments within Consumer Banking and 2) the lower interest
rate environment. While interest rates have stabilised since June 2025, top
line is likely to continue facing negative impacts through Q1'26 due to the
lagged effects of prior rate cuts, though lower funding costs should
partially offset net interest income compression. In December, the ECB left
its rates unchanged for a fourth consecutive time. The ECB projects headline
inflation at 1.9% for 2026, slightly down from 2.1% in 2025. A Reuters poll
of 96 economists shows 75% expect unchanged rates through 2026. Provided the
stable interest rate environment persists, we should see top line growth
this year at +4.6% yoy (eNuW). Wholesale Banking is set to continue to grow
strongly at a comfortable double digit rate at +36% yoy (eNuW), albeit with
a deceleration from prior years.

Multitude shines on profitability, as the business becomes more efficient,
capital-light and scalable. For FY26, EBT is seen at EUR 35.1m (+15.2% yoy)
with 13.5% margin, while net profit is expected at EUR 30.5m (+11.7% yoy) with
11.7% margin (eNuW), above guidance of EUR 30m.

In FY25, the partnership model beat our estimates every quarter. Net fee and
commission income grew from virtually zero in FY24 to a robust EUR 8m YTD in
9M'25. For FY26, we model EUR 16.7m, implying a 40% yoy increase, consistent
with management's ambitions to strongly scale the business. Here,
balance-sheet risk is minimal, as Multitude only supports loan origination.
Multitude's loan book quality also continues to improve. For reference, in
FY18 the gross loan book was EUR 468m with impairment levels of 31.5%. In
Q3'25, the gross loan book stood at EUR 880m with impairment levels of 15.2%.
We have no reasons to believe that this trend should not continue in FY26
and beyond.

We think that Multitude is a quality digital bank at a bargain. Adjusting
for perpetuals as AT1 equity, Multitude trades at a FY25e P/E of 6.9x vs.
13.8x for peers, reflecting a ~50% discount. We will write a separate
preview for Q4'25 closer to preliminary results. We reiterate our BUY rating
with a PT of EUR 11, based on our residual income model.


You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=cbc3cf6f20e92c7518aea819354ba683
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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 Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
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2266308 27.01.2026 CET/CEST

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