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Original-Research: SYNBIOTIC SE - from NuWays AG

20.10.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to SYNBIOTIC SE

Company Name: SYNBIOTIC SE
ISIN: DE000A3E5A59

Reason for the research: Update
Recommendation: BUY
from: 20.10.2025
Target price: EUR 6.00
Target price on sight of: 12 months
Last rating change:
Analyst: Christian Sandherr

Temporary headwinds from regulatory uncertainty; chg. est.

To recap: SYNBIOTIC is a European holding company active in the medical
cannabis and industrial hemp markets with twelve holdings. Following the
recent organizational restructuring, the group is now positioned along the
end-market value chains, ranging from cultivation to processing, product
development, and distribution. This structure enables SYNBIOTIC to leverage
synergies across its portfolio and maintain control over key value-adding
steps within its business model.

Short-term headwinds. While the company recorded a good start to the year,
particularly within the Medical Cannabis segment, which strongly benefited
from last year's regulatory changes, demand has recently softened. This can
be explained by significantly more cautious order behavior from customers,
particularly online pharmacies, as a direct result of the proposed
regulatory step back. The proposal would prohibit the distribution of
medical cannabis through online channels and restrict the issuance of
digital prescriptions via telemedicine, both important drivers of growth so
far. In parallel, the anticipated liberalization of industrial hemp, which
was expected to unlock additional growth opportunities, has so far not
materialized.

As a consequence, SYNBIOTIC reduced its FY25 guidance to EUR 17m in sales
(old: EUR 30m, eNuW old: EUR 23m) and now expects an EBITDA loss of EUR 1.5m (old:
EUR 1.7m profit, eNuW old: EUR 1.8m profit). This marks a notable downward
revision, reflecting both softer market dynamics and the cautious stance of
management in light of ongoing political uncertainty.

Looking ahead, we continue to expect SYNBIOTIC to remain on a growth path.
Assuming the proposed regulatory changes in the medical cannabis market are
implemented, we would anticipate lower new patient growth rates and a
moderate deterioration of the existing patient base as online access becomes
restricted. Nonetheless, SYNBIOTIC should begin to reap the benefits of its
recent product development activities. Notably, the company has developed a
cannabis pastille, offering an alternative form of THC administration that
improves dosing accuracy and patient convenience. The product is expected to
reach the market in early 2026 and could represent a meaningful addition to
SYNBIOTIC's medical portfolio.

At the same time, we view the delays in industrial hemp liberalization as
temporary. The expected legislative changes should create a more supportive
environment for hemp-based consumer products, thereby enhancing SYNBIOTIC's
growth prospects from 2026 onwards. Overall, we forecast the group's top
line to reach EUR 25m by 2027e, implying a 16% CAGR (2025-27e), alongside an
EBITDA of EUR 1.2m, as profitability gradually recovers with improved scale
and operating leverage.

We confirm our BUY rating with a new EUR 6.00 PT (old: EUR 12.40) based on DCF
as we take a notably more conservative stand to account to uncertainties
going forward.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=65c062bf5d2aa1057e425a2547519272
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
++++++++++
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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2215252 20.10.2025 CET/CEST

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