First Berlin Equity Research on 20/08/2024 initiated coverage on LAIQON AG (ISIN: DE000A12UP29/ Bloomberg: LQAG GR). Analyst Christian Orquera placed a BUY rating on the stock, with a EUR 9.80 price target.

Abstract
LAIQON AG (LAIQON) is an independent wealth and asset management firm offering investment solutions with environmental, social and governance (ESG) focus to private and institutional clients powered by its innovative Digital Asset Platform (DAP) 4.0. The company’s subsidiary LAIC combines DAP 4.0 with cutting-edge artificial intelligence (AI) techniques to create a fully automated WealthTech-advisor. The LAIC-advisor is capable of actively offering >1m personalised, AI-driven portfolio alternatives of shares, funds and ETFs according to each customer’s personal risk profile. The less sophisticated peers mostly manage a few ETFs or fund portfolios (passive strategy). These unique features convinced the German asset management giant Union Investment (Union) to become LAIC’s white-label distribution partner. The deal validates LAIC’s technology and may attract the attention of further prominent financial institutions (e.g. private banks, insurance companies, and large fintechs). With a distribution network of >600 cooperative banks, Union has the potential to generate AuM of €1.5bn for LAIC by 2025 and €5.5bn-€6.5bn by 2028. Union will launch LAIC-advisor in Q4 2024 to those of its sophisticated high net worth clients looking for personalised active investment strategies. We believe this deal will take LAIQON’s current AuM of €6.4bn to the next growth level. LAIQON shares offer an attractive value proposition to participate in the surge of the German WealthTech landscape. Our DCF valuation model yields a fair value of €9.80 p/s. We initiate coverage with a Buy rating and €9.80 price target.