123fahrschule SE: Legislative Advancements Signal Growth Potential

The German government's draft legislation for the FahrschModVO and FahrlG-ÄndG indicates a pivotal step toward the anticipated reforms in driving education. This move eliminates uncertainties about the reform's realization with an effective date set for January 2027. The legislation benefits 123fahrschule SE's business model by allowing theory instruction outside physical premises, significantly reducing industry fixed costs by approximately €55 million annually.

Simulators are acknowledged as standard training tools for Class B licenses, boosting Foerst, 123f's simulator subsidiary. The shift to competency-based special drives improves instructor efficiency. FahrerWerk, 123f's instructor training arm, will leverage digital and hybrid formats, enhancing candidate acquisition.

With legislative certainty, 123f is poised for execution with its digital infrastructure and geared operations, reinforcing the FY27e growth model. NuWays AG maintains a BUY recommendation with a target price of €6.10.