Original-Research: VOQUZ Labs AG - from NuWays AG

Classification of NuWays AG to VOQUZ Labs AG

Company Name: VOQUZ Labs AG

Reason for the research: Update
Recommendation: Kaufen
from: 10.04.2024
Target price: EUR 22.00
Target price on sight of: 12 Monaten
Last rating change: 
Analyst: Philipp Sennewald

Strong momentum as S/4HANA effect should become visible
We hosted a digital roadshow with VOQUZ Labs CEO Martin Kögel, which
provided valuable insights into the investment case. Here are the
Current trading remains on a strong level after we already saw a pick-up in
demand in H2 '23 (+14% sales vs +3% in H1) as Mr. Kögel confirmed the
company's growth ambitions (10-20% yoy in '24e). The latter looks set to be
mainly driven by further key account wins for the company's flagship
solution samQ, but also an improved contribution from visoryQ and remQ,
which should be supported by the recently announced partnership with PwC
(see our latest update).
visoryQ to drive growth and margins. The self-developed solution was first
launched in Q4 '22 and already contributed c. EUR 0.5m sales in FY '23
(eNuW). Mind you, visoryQ is an SAP-ERP business case builder, providing
in-depth scenario analyses for clients in order to optimize TCO. Especially
when it comes to the S/4HANA transformation, it offers valuable decision
support regarding the optimal strategy and should hence be in brisk demand
of yet to migrate customers given the economic significance of the
conversion. As the transformation is seen to accelerate in the coming
quarters, VOQUZ looks set to be a main beneficiary, as we expect visoryQ
sales to develop dynamically at a 65% CAGR '23p-26e.
M&A: With the acquisition of remedyne in 2023, VOQUZ tipped off its pursued
buy and build strategy, which it intends to continue in 2024, as Management
is already screening the market for possible targets. VOQUZ is seen to
target companies in the SAP add-on space in order to facilitate
cross-selling potential. Moreover, acquired solutions should be
internationally applicable without any specific industry focus industry
focus. While smaller targets like remedyne (EUR 0.3m acquisition volume)
could be financed out of the CFO, CEO Kögel intended that the company would
likely need to tap the capital market in order to perform a larger
Considering the excellent growth prospects of the company as well as the
high scalability of the business model, the stock looks undervalued trading
on a mere 1.2x EV/Sales and 8.0x EV/EBITDA '24e (0.9x/ 4.5x based on FY25e)
while providing attractive returns on the other hand.
We hence reiterate BUY with an unchanged PT of EUR 22.00 based on DCF.

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