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Original-Research: GFT Technologies - from Quirin Privatbank

Kapitalmarktgeschäft

09.05.2025 / 16:23 CET/CEST

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

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to GFT Technologie

Company Name: GFT Technologie

ISIN: DE0005800601

Reason for the research: Update

Recommendation: Buy

from: 09.05.2025

Target price: 38

Last rating change:

Analyst: Sebastian Droste

Growth in Americas and insurance

On May 8, 2025, GFT released its Q1 financial results and confirmed it

guidance for 2025. Revenue growth was stable and in line with our

expectation. Growth was driven by strong momentum in the insurance sector

and the Industry & Others segment, as well as solid expansion in Latin and

North America. The integration of Sophos Solutions contributed to inorganic

growth, while new business wins in robotics supported sector

diversification. However, structural challenges in the UK and macroeconomic

weakness in Continental Europe weighed on performance. Adjusted EBIT wa

impacted by higher personnel expenses, reduced R&D subsidies, and

transformation costs, but the margin of 6.8% exceeded our estimate. GFT

confirmed its 2025 guidance, expecting revenues of EUR 930.0m and adjusted

EBIT of EUR 75.0m, both in line with our expectations. Notably, GFT raised

its EBIT guidance from EUR 68.0m to EUR 75.0m due to a new definition of

adjusted EBIT that now includes capacity adjustments and other extraordinary

items. The investment case remains intact, supported by strong structural

demand for cloud and AI solutions, growing international exposure, and

increasing productivity gains through its AI-centric setup. We raise our

target price to EUR 38.00 (previously EUR 37.50) and confirm our Buy

recommendation.

You can download the research here: http://www.more-ir.de/d/32542.pdf

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2134496 09.05.2025 CET/CEST

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