Quirin Privatbank Kapitalmarktgeschäft: GFT Technologies | Rating: Buy

Classification of Quirin Privatbank Kapitalmarktgeschäft to GFT Technologies

Company Name:	GFT Technologies
ISIN:	DE0005800601
Reason for the research:	Update
Recommendation:	Buy
from:	09.05.2025
Target price:	38
Last rating change:
Analyst:	Sebastian Droste

Growth in Americas and insurance

On May 8, 2025, GFT released its Q1 financial results and confirmed its guidance for 2025. Revenue growth was stable and in line with our expectation. Growth was driven by strong momentum in the insurance sector and the Industry & Others segment, as well as solid expansion in Latin and North America. The integration of Sophos Solutions contributed to inorganic growth, while new business wins in robotics supported sector diversification. However, structural challenges in the UK and macroeconomic weakness in Continental Europe weighed on performance. Adjusted EBIT was impacted by higher personnel expenses, reduced R&D subsidies, and transformation costs, but the margin of 6.8% exceeded our estimate. GFT confirmed its 2025 guidance, expecting revenues of EUR 930.0m and adjusted EBIT of EUR 75.0m, both in line with our expectations. Notably, GFT raised its EBIT guidance from EUR 68.0m to EUR 75.0m due to a new definition of adjusted EBIT that now includes capacity adjustments and other extraordinary items. The investment case remains intact, supported by strong structural demand for cloud and AI solutions, growing international exposure, and increasing productivity gains through its AI-centric setup. We raise our target price to EUR 38.00 (previously EUR 37.50) and confirm our Buy recommendation.
 

You can download the research here: http://www.more-ir.de/d/32542.pdf
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/