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 decreased the price target from EUR 1.80 to EUR 1.50.

Abstract
Deutsche Effecten- und Wechsel- Beteiligungsgesellschaft (DEWB) has published its financial statements for H1/24. Adjusted for non-cash income, the results were as expected. The company reported operating income from exits of €0.4m (FBe: €0.4m; H1/23: €0.2m). The current difficult capital market environment was the main obstacle for the completion of a major exit transaction at an appropriate valuation. Management is continuing to work on potential exit options, but completions before the end of 2024 are difficult to predict and depend on further capital market developments. Based on management’s disciplined spending, OPEX fell to €0.4m (FBe: €0.4m; H1/23: €0.6m). According to management, most companies from DEWB’s investment portfolio have healthy operations and performed well in H1/24. Unfortunately, the share prices of the three listed holdings LAIQON, Naga Group and Aifinyo have performed poorly despite a positive business outlook. We have updated our financial model, and reiterate our Buy recommendation with a lower price target of €1.50 (previously €1.80). We believe the company is significantly undervalued at the current share price.