GFT TECHNOLOGIES

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Original-Research: GFT Technologies SE - from NuWays AG

17.06.2026 / 09:00 CET/CEST

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Classification of NuWays AG to GFT Technologies SE

Company Name: GFT Technologies SE

ISIN: DE0005800601

Reason for the research: Update

Recommendation: BUY

Target price: EUR 32

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

Banking IT remains a specialist game

We hosted GFT at our London conference, which reinforced the key pillars of

the equity story:

* Quality remains the bedrock. GFT is a banking specialist in one of the

hardest IT verticals, where security, regulation and legacy stacks make

execution risk the real cost. Quality leadership in digital banking is

externally validated (e.g. IDC and QKS), and the client roster speaks

for itself, with Deutsche Bank, HSBC, JPM and Santander among them.

While the business does not generate recurring revenue by design,

relationships are very sticky due to trust and system knowledge: once

GFT has done a complex project it is deeply embedded in the client's IT

estate, which makes it hard to displace. Consistently high utilisation

points to disciplined capacity management and supports the margin

resilience of the model.

* The market is large and still growing, although a broad-based pick-up is

not yet visible in group-reported numbers, partly masked by the

struggling UK business. With approx. 75% of banks still running on

legacy systems, there remains a sizeable market opportunity in banking

IT modernisation, expected to result in a market CAGR of c. 18% into

2030 (source: Mordor Intelligence). This is not a one-to-one

read-through to GFT sales, yet the need for integration, data flows,

APIs and core platform work fits GFT's capabilities well. AI should act

as a demand multiplier, shifting the bottleneck to precisely those

areas.

* AI looks net accretive on balance. While prices per project decline

thanks to efficiencies, volume growth is seen to more than offset this

effect, as more projects clear the ROI hurdle and clients broaden the

scope. GFT's proprietary Wynxx platform, mainly a project enabler, is

more than a wrapper around individual LLMs. Its model-agnostic setup

routes tasks across ChatGPT, Claude, Gemini, proprietary and open-source

models based on cost, speed, capability, security and use case. The

value-add lies in GFT's orchestration know-how and preconfigured agents,

making AI deployable in complex enterprise IT environments. At Bradesco

Seguros, the client reinvested efficiency gains into additional scope,

following intense Wynxx testing, lifting revenue above pre-Wynxx levels

for GFT. Similarly, a Brazilian automotive group's documentation

programme, uneconomical pre-AI at c. 1.5 years and $ 1.1m, was reframed

into a 16-week, $ 100k delivery, turning it into incremental revenue.

* Margins are set to expand, and Q1 already showed the first signs, with

the adj. EBIT margin up 0.2pp yoy to 7%. Two levers are seen to support

the remaining quarters. The first is the UK turnaround: we expect the

unit to return to profitability in Q2 and to resume growth in Q3,

following capacity rightsizing, new leadership and an improving

pipeline. Second, strategic mid-term initiatives: smartshore should

scale to 40% by 2029 from c. 20%, while high-value-added services should

increase from c. 25% today to up to 50%, supported by bolt-on M&A such

as Megawork (closed in Sep 25).

* Guidance remains for c. 5% fx-adj. growth and a slight EBT margin

improvement to 6% (+0.8pp yoy), which appears achievable without any

meaningful market recovery.

BUY, PT EUR 32, based on DCF.

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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

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