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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 (+2.8% yoy) and 2.0%
below our expectation. The increase was mainly driven by organic growth
(+6.0% 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 (+20.0% yoy) and Industry & Others
(+11.0% 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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