NFON AG: Promising Growth and Expansion in FY25

NFON AG is expected to showcase strong growth in FY25, propelled by enhanced cloud adoption and strategic acquisitions. With sales projected to rise by 12.7% to €97.1 million, NFON's recurring revenues aim to reach 94.6%, moving away from hardware sales in favor of premium solutions. The acquisition of botario in 2024 is predicted to bolster capabilities in AI and process automation, providing a competitive advantage in the business communication market.

The fiscal outlook appears robust, with adjusted EBITDA predicted to grow by 31% to €15.7 million, offering a margin of 16.2%. This growth is supported by a refined sales mix and cost-saving measures undertaken in previous years. Free Cash Flow is set to improve to €5.5 million, reflecting NFON's enhanced operational efficiency.

Despite these positive indicators, NFON's stock valuation remains attractive, trading at lower EV/adj. EBITDA ratios. This indicates potential undervaluation, with significant operational advancements not yet fully mirrored in its current stock price. Accordingly, the recommendation remains a "BUY" with a target price of €11.70.