NuWays AG Recommends "Buy" for tonies SE Following TB2 Launch

Tonies SE recently introduced the Toniebox 2 (TB2), marking a major innovation since its initial product launch in 2016. With the TB2, tonies expands its market to children aged 1-9, featuring new interactive play formats and figurine lines, which are anticipated to drive demand significantly. The launch has positioned tonies as a leader in screen-free entertainment for kids, leveraging strong content partnerships with major licensors like Disney and Pokémon.

The company expects robust growth from international expansions, particularly in the US, where market penetration is currently low compared to DACH. Growth strategies include data-driven market roll-outs and improved customer engagement. Tonies projects doubling sales in the US by FY’28, driven by retail demand and high customer satisfaction.

Tonies aims to increase profitability by mimicking the DACH market's success, foreseeing improved margins in North America and other regions as expansion costs decrease. With the anticipated rise in free cash flow, tonies is transitioning towards becoming a cash-generating entity. This promising outlook has led NuWays AG to maintain a "Buy" rating, raising the price target to €13.00.