First Berlin Equity Research has published a research update on LAIQON AG (ISIN: DE000A12UP29). Analyst Christian Orquera reiterated his BUY rating and increased the price target from EUR 9.00 to EUR 10.60.

Abstract
LAIQON AG has announced the acquisition of up to €2.5bn in assets under management (AuM) from MainFirst Affiliated Fund Managers (Germany) consisting of mutual and special funds for an undisclosed price. The acquisition aims to increase critical mass and significantly boost profitability in the Asset Management segment. The acquisition is expected to add around €14m in annual revenue (2024 group revenue: €31m) with limited cost impact. The transaction will be non-dilutive as it will be financed via cash flows from the acquired assets and a €10m bond (2025/2030, 5.5% coupon) aimed at professional investors. We think this is a strategically sound and financially prudent transaction which will: (1) add scale; (2) expand LAIQON’s geographic reach deeper into European countries; (3) strengthen investment capabilities; and (4) boost revenue and profitability. This strategic step stands to position LAIQON as a larger, more competitive and profitable European asset manager. We have adjusted our DCF valuation model to take the deal into account and arrive at a new price target of €10.60 (previously: €9.00). We reiterate our buy rating. Upside: 148%.