NuWays AG Recommends BUY for MLP SE

NuWays AG has released an updated research note for MLP SE, classified under ISIN: DE0006569908. The recommendation remains a BUY with a target price of EUR 11.50. Analyst Henry Wendisch provided a detailed outlook on MLP's banking sector.

Despite declining interest rates, MLP's banking business appears solid. MLP holds €3bn in interest-bearing assets at an average rate of 3%. The assets are distributed among loans to customers (43%), deposits at commercial banks (25%), and deposits at central banks (32%).

MLP's customers have deposited €2.9bn, attracting an average interest rate of 1.2%. Deposits include checking accounts (0%), overnight deposits (1.5%), and time deposits (2.75%). Expected ECB rate declines are predicted to proportionately lower the average interest rate for short-term commercial and central bank deposits.

However, long-term fixed-rate loans should be stable or slightly increasing. This will help MLP maintain a net interest margin of 61%. NuWays AG forecasts net interest income of €46m in FY'25 and €41m in FY'26, with a sensitivity analysis ranging from €23m to €65m.

NuWays AG remains confident that MLP will achieve its guidance and continue to grow earnings, upholding the BUY recommendation.