GFT Technologies SE: Positive Outlook with BUY Recommendation

NuWays AG has maintained its BUY recommendation for GFT Technologies SE, setting a target price of EUR 32 over the next 12 months. Expected to release its H1 results on August 6, GFT is anticipated to report significant growth in adjusted EBIT, surpassing sales growth for the second consecutive quarter.

The company projects a 4.5% increase in Q2 sales year-on-year, reaching €229.5m, with adjusted EBIT expected to grow by 8.6% to €16.3m. This performance reflects strong business in the Americas, especially Brazil, despite a softer German market and recovering UK operations.

Despite sector disruptions affecting peers like IBM and Accenture, GFT remains unaffected. Recent M&A activities also indicate potential undervaluation of GFT's share price. With a trading multiple of 13x EV/EBIT compared to peers' higher valuations, GFT's robust earnings growth further supports its promising outlook.