NuWays AG Reaffirms 'Hold' Rating for 029 Group SE Amid Steady Developments

NuWays AG has released an update on 029 Group SE, maintaining a 'Hold' recommendation with a target price of EUR 14.00. The report highlights steady performance amidst key asset growth. Fiscal Year 2023 figures showed no sales due to a lack of divestments, though operating expenses dropped to roughly €0.6m. A recent divestment of Emerald Stay brought in €1.6m, bolstering liquidity. Cash stood at €10k year-end.

029 Group's main assets include Limestone Capital and TRIP Drinks, together representing 95% of the implied fair NAV. TRIP Drinks, a CBD-infused beverage, has expanded its presence to over 25,000 stores in the UK, France, and the US, achieving 390% annual sales growth to GBP 20m. A new non-CBD product, "Mindful Blend," aims to drive further expansion.

Meanwhile, Limestone Capital is progressing with hotel portfolio expansion, recently acquiring a hotel in Madrid. The firm aims to grow its aethos brand to 20 hotels by the end of 2025.

NuWays confirms the 'Hold' rating with an unchanged €14 price target, based on a sum-of-the-parts valuation with a 5% holding discount.