NuWays AG Recommends NFON AG as a "BUY" Despite Q1 Challenges

NuWays AG has maintained its "BUY" rating for NFON AG, with a target price of EUR 8.3 within twelve months. The recommendation follows NFON's release of its Q1'26 figures, revealing a revenue dip to €21.6 million, a 2.3% drop year-on-year. This decline is attributed to seat erosion and weak order intake, although growth in AI solutions showed promise. Notably, recurring revenues remained strong, accounting for 93.8% of the total.

While EBITDA fell to €1.8 million, NFON's investment in AI and product development is expected to pay off. AI-driven sales have reached about 10%, with significant growth projected from 2027. The company anticipates a slow Q2, with recovery in H2. The fiscal year guidance of low-to-mid single-digit growth remains projected. Despite current challenges, NuWays highlights NFON's solid liquidity and potential for upsell within its customer base.