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Original-Research: PSI Software - from Quirin Privatbank

Kapitalmarktgeschäft

09.05.2025 / 16:33 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 PSI Software

Company Name: PSI Software

ISIN: DE000A0Z1JH9

Reason for the research: Update

Recommendation: Buy

from: 09.05.2025

Target price: 35.50

Last rating change:

Analyst: Sebastian Droste

Orders surge & outlook confirmed

On April 30, PSI Group released its Q1 financial results and confirmed it

guidance for 2025. Revenue growth was strong and exceeded our expectation.

Growth was driven by record new orders, a higher order backlog, broad-based

segment gains in Grid&Energy Management, Process Industries&Metals, Discrete

Manufacturing and Logistics, plus initial cloud/SaaS uptake and the Google

Cloud partnership. Challenges include execution risk on large contracts and

integration of new solutions. EBIT margin rebounded from a cyberattack-hit

loss and beat expectations, supported by better fixed-cost absorption and

segment profit recovery, though ongoing cloud investments may weigh on

margins. Management guided 10.0% yoy revenue growth and a 4.0% adjusted EBIT

margin for 2025, both in line with our forecasts. The investment case rest

on PSI's transition to cloud/SaaS, reinforced by its strategic Google Cloud

partnership, which should drive a growing base of high-margin recurring

revenue and enhance earnings predictability. We raise our target price to

EUR 35.50, reflecting the roll forward of our DCF valuation and confirm our

Buy recommendation.

You can download the research here: http://www.more-ir.de/d/32546.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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2134504 09.05.2025 CET/CEST

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