NuWays AG Recommends HOLD for MWB AG

NuWays AG has initiated coverage on MWB AG with a recommendation to HOLD. The research highlights MWB's unique position in the growing online secondhand luxury watch market. MWB's significant social media presence, including an Instagram following of 220,000, underscores its reputation for authenticity.

MWB differentiates itself from competitors like Chrono24 and Chronext with its trusted network and founders' expertise. The company ensures the authenticity of each sale and offers access to hard-to-get luxury watches. In FY'23, MWB sold 410 luxury watches, with prices reaching up to €460,000.

The company's capital-light model, supported by customer pre-payments, results in strong gross margins of approximately 5%. As MWB's sales are projected to grow at a CAGR of 44% from 2023 to 2026, the company is poised to achieve a positive EBITDA margin by 2024.

Despite strong growth potential, NuWays AG recommends a HOLD due to MWB's post-IPO share price movement surpassing the target price of €60.00.