Original-Research: Multitude AG (von NuWays AG): BUY

Classification of NuWays AG to Multitude AG

Company Name:	Multitude AG
ISIN:	CH1398992755
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 12
Target price on sight of:	12 months
Last rating change:
Analyst:	Julius Neittamo

Q2 review: Sortter acquisition looks very attractive; PT UP

Multitude reported Q2'26 results yesterday. Consumer Banking interest income came in at € 41.2m (-18% yoy, +0.4% qoq), below eNuW € 42.8m, as FY25 divestments still negatively impacted topline. SME Banking posted € 8.9m (+2% yoy, +0.7% qoq; eNuW € 9.2m), while Wholesale Banking came in at € 7.5m (+64% yoy, +9.2% qoq; eNuW € 7.8m) on the back of the expanding secured debt book, confirming the segment as the group's growth engine at a 26% EBT margin. At group level, interest income totalled € 57.6m (-10% yoy, +1.6% qoq; eNuW € 59.8m). Fee and commission income jumped to € 7.7m (+161% yoy; € +1.8m vs eNuW), lifting its share to 11.8% of revenue (+7.4pp yoy). The beat was inorganic, however, as Sortter was fully consolidated from May 20th and contributed € 2.9m in fee and commission income, implying adj. fee income of € 4.8m (+62% yoy; € -1.1m vs eNuW). Total revenue was thus € 65.3m (-2% yoy, +6% qoq; vs eNuW € 65.7m).

Net operating income grew 3.5% yoy to € 56.6m (€ 55.2m; eNuW). The beat was driven by (i) higher fee and commission income following Sortter's consolidation (€ +1.6m vs eNuW), (ii) € 2.5m from the revaluation of the previously held ~20% Sortter stake and (iii) € 0.5m of fair value and FX gains, which included a € 1.3m gain on the revaluation of the FY25 divestment earn-outs, partly offset by FX and derivative losses.

Loan book de-risking continues steadily. Impairments fell to a new low of € 16.9m (€ 19.1m; eNuW), taking the annualised cost of risk to 6.8% (-2.7pp yoy). This reflects Multitude's strategic shift: originating in lower-risk, lower-yield markets while monetising the riskier ones through its platform and brokerage capabilities.

Costs remained stable. Cost-income-ratio was 52% in Q2'26 (-1pp vs eNuW), driven by lower personnel and G&A expenses (€ -1.3m vs eNuW), though selling and marketing expenses were higher (€ +1.6m vs eNuW). Here, Multitude sees elevated cost-income-ratio through FY26, due to investments in Wholesale banking, the partnership business as well as due to PPA amortisations.

The large profit beat rested largely on non-recurring elements. Reported EBT came in at € 10.0m in Q2'26 (€ +3.2m vs eNuW), with net profit of € 8.7m (€ +2.8m vs eNuW). Adjusted for the Sortter revaluation, fair value and FX gains as well as the € 0.5m inorganic EBT contribution from Sortter, organic adj. EBT was € 6.6m (€ 6.8m; eNuW).

The Sortter acquisition looks very attractive and shifts the group's revenue mix toward fees. Multitude paid € 7.0m for the remaining ~80%, implying € 8.8m equity value for the full stake. Sortter also carried € 9.0m of debt owed to Multitude, cancelled on consolidation. Net of € 3.5m cash acquired, the implied EV is € 14.2m, which would put the deal at 0.6x EV/sales. Management guides Sortter to a € 25m revenue run-rate (+47% yoy) with € 5m net profit, implying a 1.8x P/E on the equity consideration. The low price reflects a share option over the remaining shares, agreed in 2023 when Multitude first took a 19.97% stake.

We consolidate Sortter and raise our estimates. We now forecast FY26 net profit of € 31.9m (old: € 29.3m), above guidance of € 30m, as (i) Sortter will contribute a full six months in H2, (ii) impairments are seen to trend lower while (iii) consumer lending is set to return to growth.

In light of the above, we raise our PT to € 12 (old: € 11) and confirm our BUY rating based on residual income model.

You can download the research here: multitude-ag-2026-08-14-previewreview-en-47630
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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