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Original-Research: 123fahrschule SE - from NuWays AG

20.10.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

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Classification of NuWays AG to 123fahrschule SE

Company Name: 123fahrschule SE

ISIN: DE000A2P4HL9

Reason for the research: Update

Recommendation: BUY

from: 20.10.2025

Target price: EUR 7.40

Target price on sight of: 12 month

Last rating change:

Analyst: Philipp Sennewald

Ministry proposal clears the way - 123f seen to benefit most

The German Ministry of Transport published its long-awaited proposal to make

obtaining a driving licence more affordable, confirming a fundamental reform

of driving school training. Crucially, the paper explicitly enables the full

digitalisation of theory lessons by abolishing mandatory classroom teaching

and room requirements, while simulators will be formally integrated into the

practical training and can even replace parts of mandatory special drives.

In addition, bureaucracy will be reduced, documentation obligation

simplified, and the practical test will be shortened to the European minimum

of 25 minutes. These measures aim to lower costs for students, improve

efficiency for schools and increase competition via more transparency. Legal

implementation is targeted for H1 2026, in line with previous indications.

In our view, this marks a structural inflection point for 123f as it fully

confirms the company's strategic direction. 123f has been preparing for

exactly these changes over the past two years, investing in its digital

platform, simulator infrastructure (via the Foerst acquisition) and proce

automation. With online theory, 123f can significantly scale capacity

without additional classrooms and reach a wider catchment area, driving

higher sales per branch and superior margins. The integration of simulator

into mandatory training should unlock the currently delayed demand,

especially as customers were waiting for legal clarity. As stated in our

last update, this should lead to catch-up effects from FY26e onwards.

Moreover, lower mandatory drives and digital theory allow 123f to offer

significantly cheaper licences with at least stable margins, supporting

market share gains in its core regions.

The reform also strengthens 123f's competitive moat: smaller peers lacking

digital capabilities or financial resources to invest in simulators will

struggle to comply, while 123f is already fully set up. Combined with it

integrated driving instructor training and largest branch network in

Germany, the company remains in pole position to benefit once the reform

comes into force.

All in all, the ministry's proposal removes the key bottleneck that has been

holding back simulator demand and confirms 123f's strategic roadmap. We see

this as a major medium-term catalyst that should accelerate growth, improve

margins and unlock significant operating leverage. With an undemanding

valuation and clear regulatory tailwind, the investment case strengthen

further.

We hence reiterate our BUY rating with an unchanged PT of EUR 7.40 based on

DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=dba0bd04e3d56d1277b1431b2aa46dd5

For additional information visit our website:

https://www.nuways-ag.com/research-feed

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 Abschlu

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2215246 20.10.2025 CET/CEST

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