First Berlin Equity Research has published a research update on Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft AG (ISIN: DE0008041005). Analyst Christian Orquera reiterated his BUY rating and maintained his EUR 1.50 price target.

Abstract
DEWB has reported its FY/24 results, which were close to our estimates. Other operating income amounted to €0.8m (FB: €0.9m; 2023: €0.3m). The company was unable to complete a major exit transaction at an appropriate valuation due to the current difficult capital market conditions. DEWB recorded a significant improvement in its operational result. The EBIT loss narrowed to €-0.1m vs €-0.7m in 2023. According to management, most companies from DEWB’s investment portfolio are operationally healthy and performed well in 2024. LAIQON particularly stood out having: (1) entered into a strategic partnership with Union Investment, Germany’s second largest asset manager; and (2) expanded its asset management business through the non-dilutive acquisition of Main First’s operations. Also worthy of note, Stableton, benefited from renewed investor interest in pre-IPO tech and saw growth in both assets under management and transaction volumes. For 2025, DEWB plans to focus on exits (in particular the LAIQON investment) and further expansion of its portfolio. Management remains optimistic about the long-term potential of its portfolio, especially following the recent successful issuance of its €4m 2025/2030 convertible bond (4.5% coupon), which was oversubscribed and provides additional financial leeway to invest in promising new fintechs. Following 2024 reporting, we have updated our financial model. Our recommendation remains Buy with an unchanged price target of €1.50. (upside: 183%)