Q.beyond AG Shows Resilience Amidst Q3 Challenges

In the latest research update, NuWays AG recommends a "BUY" rating for q.beyond AG with a target price of EUR 4.90 over the next 12 months. Despite Q3 sales dropping by 1.1% year-over-year to €43.2m, the company shows signs of resilience. Consulting services grew by 13.2% to €17.3m, yet were unable to counteract an 8.8% decline in Managed Services.

EBITDA challenges persist, showing a negative €7.1m, mainly influenced by non-recurring restructuring costs. Adjusted EBITDA, however, improved to €2.4m, indicating effective cost measures.

Persistent price pressure affects Managed Services, with a low gross margin due to fixed costs. Future signs are positive as major client Fressnapf approaches contract renewal. Despite market hurdles, q.beyond AG exhibits potential to improve profitability, supported by operational restructuring and utilization strategies.