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

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Original-Research: Multitude AG - from NuWays AG

19.05.2026 / 09:00 CET/CEST

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Classification of NuWays AG to Multitude AG

Company Name: Multitude AG

ISIN: CH1398992755

Reason for the research: Update

Recommendation: BUY

Target price: EUR 11

Target price on sight of: 12 months

Last rating change:

Analyst: Julius Neittamo

Multitude Q1 preview; soft quarter expected due to divestments

Multitude will report its Q1'26 results Thursday. Here is what to expect:

Consumer Banking interest income is expected down 30% yoy to EUR 36.3m (eNuW),

as the company divested its Micro Loan businesses in 2025 as part of a

deliberate de-risking strategy. Additionally, lagged effects of prior

rate-cutting cycles are seen to have continued weighing on net interest

compression. In March 2025, Sweden lowered the interest rate cap from

reference rate +40pp to reference rate +20pp for unsecured consumer credit,

likely further impacting yields in Q1'26.

CapitalBox interest income is seen at EUR 8.1m, down 6% yoy (eNuW). The latest

available Eurostat data, for Q4'25, showed EU-27 business registrations at

an index of 112.5, up 4.8% yoy, while bankruptcy declarations reached an

index of 195.9, up 11% yoy.

Wholesale Banking continues to be the standout growth driver, seen up 50%

yoy to EUR 5.9m (eNuW), building on the FY25 trajectory of +46% yoy. The

business unit targets overlooked institutional deals outside the expertise

of traditional banks, with a well-collateralised and scalable model.

The strong partnership business and good performance of associates should

offset the divestments and headwinds from softer market conditions. Net fee

and commission income is seen at EUR 5.5m, up 185% yoy and accelerating 5% qoq

(eNuW). The partnership model is highly net profit margin accretive given

its capital-light setup. Income from associates, led by Lea Bank and

Sortter, is expected to be EBT accretive with EUR 0.6m (eNuW), having

contributed EUR 3m in FY25 and EUR 1m in Q4'25 to net operating income. Note

that from Q1'26 onwards, income from associates will be reported below

operating income.

Given the above, net profit is seen at EUR 5.5m, a decline of 23.9% yoy and

reflecting a margin of 10.9% and (eNuW).

On the macro backdrop, the rate environment has shifted relative to

expectations earlier this year. The ECB held rates unchanged at its April

meeting, acknowledging that upside risks to inflation and downside risks to

growth have intensified, driven by the Iran conflict. A Reuters poll

conducted 8-13 May, showed 59 of 70 economists expect a rate hike to 2.25%

in June, while nearly half are expecting at least one further increase later

this year. A stagflationary scenario later this year would compress lending

volumes while increasing the risk of impairments, especially in the

high-yield lending market.

The path to FY26 guidance of EUR 30m is likely to be heavily H2-weighted. The

guidance remains achievable, as the effects from divestments progressively

ease, while Wholesale Banking and the partnership business are expected to

continue on their strong performance. Nevertheless, the abovementionned

macro backdrop remains a risk. We do not make any changes ahead of results

and keep our BUY rating with a PT of EUR 11.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=bc8abfaa1ba22f23fe355233a56de422

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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2329510 19.05.2026 CET/CEST

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