Quirin Privatbank Kapitalmarktgeschäft: Datagroup SE | Rating: Hold

Classification of Quirin Privatbank Kapitalmarktgeschäft to Datagroup SE

Company Name:	Datagroup SE
ISIN:	DE000A0JC8S7
Reason for the research:	Update
Recommendation:	Hold
from:	03.06.2025
Target price:	58
Last rating change:
Analyst:	Sebastian Droste

Strong order uptick in Q2

On 27 May 2025, Datagroup released its Q2 financial results and confirmed its guidance for FY 2024/2025. Revenue growth was strong and in line with our expectation. Revenues in Q2 increased by 10.1% yoy. The increase was supported by solid order intake in the CORBOX core business, successful acquisition of new customers, and additional cross- and upselling contracts. Furthermore, the company benefited from a higher share of hardware in the service mix. However, the shift toward hardware likely diluted margins due to its typically lower profitability. At the same time, ongoing investments in AI, cybersecurity, and cloud services continued to support the strategic positioning but weighed on earnings. The EBIT margin declined slightly from 8.3% to 8.1%, in line with our estimate. Cash flow from operating activities was weaker due to higher trade receivables. Importantly, the public tender offer by KKR remains a key development. If the 80% or 90% acceptance thresholds are reached by 6 June 2025, the offer price will increase to EUR 56.50 or EUR 58.00 per share, respectively. Delisting will proceed after settlement. We change our target price to EUR 58, in line with the public offer and change our rating to Hold.
 

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