NuWays AG Downgrades 029 Group SE to SELL

A recent research update by NuWays AG has downgraded 029 Group SE to a "SELL" recommendation. The target price remains unchanged at EUR 25, despite recent gains in share price to around EUR 41, which implies a potential downside of approximately 40%. The downgrade is attributed to valuation concerns rather than operational performance.

029 Group’s H1 report shows stable operational progress with no sales and a minor net loss. The firm's notable holdings are making strides; Limestone’s new funds expanded its assets under management significantly, and Periskop widened its earnings with strategic extensions and land sales.

Despite these developments, the combined reported NAV of €39.3m, or €7.86 per share, remains below NuWays’ fair calculated NAV of €25 per share. The venture stakes contribute modestly, and operations remain steady, suggesting the market has more than accounted for operational improvements.