Steady Progress for q.beyond AG amid Challenging Market Conditions

q.beyond AG, evaluated by NuWays AG, maintains a "BUY" recommendation with a target price of EUR 1.3, aiming for a 12-month horizon. As the company approaches FY26, it is transitioning from a demanding phase of transformation, focusing more on profitability than on top-line growth.

Q3 showed weaker operations with a drop in sales, yet the company’s overall profit margin remains unchanged. Thanks to cost discipline and improvements in consulting utilization, the operating EBITDA was positive at €0.4m. Management maintains forecasts for FY25 with sales between €184-190m and positive net income.

Looking ahead to FY26, a gradual normalization is expected, with portfolio improvements and increased demand for cloud and AI services driving moderate sales growth. The company plans strategic acquisitions, particularly in the energy and healthcare sectors, facilitated by a net liquidity of €35m.