Original-Research: wallstreet:online AG - von GBC AG

Einstufung von GBC AG zu wallstreet:online AG

Unternehmen: wallstreet:online AG
ISIN: DE000A2GS609

Anlass der Studie: Research study (Anno)
Empfehlung: BUY
Kursziel: 37.55 EUR
Letzte Ratingänderung:
Analyst: Marcel Goldmann, Cosmin Filker

FY 2021 closed with significant revenue growth from booming transaction and
portal business; Dynamic revenue growth also for the current FY 2022 due to
the strong expansion and optimisation of the Brokerage business expected;
The continuation of the successful growth strategy should
ensure dynamic sales and earnings growth in the future; Target price: EUR
37.55 (previously: EUR 38.60); Rating: Buy

According to published business figures, wallstreet:online achieved a new
record in the past financial year 2021 on a pro forma basis with revenue
growth of 82.2% to EUR 51.40 million (previous year: EUR 28.21 million).
The transaction business (Smartbroker) proved to be the main growth driver.
This exceeded the company's guidance (EUR 45.00 million to EUR 50.00
million). Our revenue estimate was also reached or almost reached on a pro
forma basis as well as on the level of reported consolidated revenues (EUR
48.20 million) (GBC forecast: EUR 49.10 million).

At the earnings level, EBITDA adjusted for one-time effects and new
customer acquisition costs for the Smartbroker of EUR 13.1 million
increased dynamically by 45.0% to EUR 17.50 million (previous year: EUR
12.50 million). Due to considerable investments in the expansion and
development of the brokerage business, which, in addition to development
costs incurred, primarily affected the marketing and
personnel areas, the EBITDA after customer acquisition costs fell to EUR
3.90 million (previous year: EUR 7.50 million) compared to the previous
year. It should be noted that the EBITDA of the previous year was
positively influenced by a special effect based on extraordinary income
(EUR 3.01 million) from the sale of an investment. The company thus also
met its earnings guidance (adjusted EBITDA before customer acquisition
costs: EUR 17.50 million). Our earnings estimate was not reached due to
higher costs for the development and expansion of their transaction

For the current financial year 2022, wallstreet:online also expects a
continuation of their dynamic growth course. The management expects a
significant increase in consolidated revenues of around 25.0% to between
EUR 62.0 million and EUR 67.0 million compared to the previous year. At the
earnings level, adjusted EBITDA (operating EBITDA) after customer
acquisition costs is expected to be in a range of EUR 10.00 million to EUR
12.00 million. With regard to customer acquisition costs (Smartbroker), the
company expects marketing costs of EUR 6.00 million for the current
financial period and thus an adjusted EBITDA before customer acquisition
costs of EUR 16.00 million to EUR 18.00 million.

We also expect that the company will be able to continue its successful
growth course dynamically in the current financial year and in the years to
come. The transaction business and the Smartbroker should continue to be
the main growth drivers in the future. Specifically, we expect consolidated
revenue of EUR 62.33 million for the current financial year. In the
following years 2023 and 2024, these should increase further to EUR 84.02
million and EUR 98.57 million respectively.

Parallel to our revenue estimates, we also expect significant growth in
earnings. For the current financial year 2022, we calculate an EBITDA of
EUR 10.04 million. Based on expected economies of scale in both business
units, we expect a disproportionate increase in EBITDA to EUR 14.05 million
and EUR 28.73 million for the coming financial years 2023 and 2024,
respectively. At the same time, the expected EBITDA margin should jump from
16.1% (2022) to 29.1% (2024).

Overall, we remain convinced that the wallstreet:online group will succeed
in significantly expanding its market positions in their two complementary
business segments and thus continue its dynamic growth course. Their
significant investments in the Smartbroker should be increasingly reflected
in their earnings and profitability figures in the future, in particular
due to expected economies of scale and an improved cost structure. In
addition, we expect that the increased dovetailing of the synergetic media
and brokerage business activities will additionally boost the growth course
and profitability of the group.

Within the framework of our DCF valuation model, we have determined a
target price of EUR 38.60 per share based on our estimates, which were
previously adjusted in our research report (based on the preliminary
business figures). Due to higher capital costs (the increase in the risk-
free interest rate to 0.40% instead of the previous 0.25%) compared to the
previous study (as of 30 March 2022), we have slightly lowered our previous
price target to EUR 37.55 per share. We have left our previous revenue and
earnings estimates unchanged. In view of the current share price level, we
continue to give the rating 'Buy' and see significant upside potential.

Die vollständige Analyse können Sie hier downloaden:

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Datum und Zeitpunkt der Fertigstellung der Studie: 20.06.2022 (9:31 Uhr)
Datum und Zeitpunkt der ersten Weitergabe: 20.06.2022 (10:00 Uhr)
Gültigkeit des Kursziels: bis max. 31.12.2022

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