We remain committed to the project as well @Dividendenopi .
And our dear @schlimmschlimm will certainly remain invested as well.
An analyst has raised the price target for GFT Technologies from 28 to 34 euros and reaffirmed the “buy” recommendation.
Another buy report dated November 4 sets a 12-month target of 32 euros and anticipates rising revenue and higher adjusted EBIT in the third quarter.
The Q3 forecast is based on growth in Latin America and a recovery in profitability in the UK.
According to GFT, an AI solution developed with Itaú Unibanco reduced the migration time by up to 70 percent in the initial phase.
Price Target Raised Ahead of Quarterly Results
GFT Technologies stock is receiving additional momentum from analysts: The price target was raised from 28 to 34 euros, and the rating remains “Buy.” At 8:38 a.m. on November 5, the
share was trading at 27.70 euros, up 0.18 percent. The market reaction thus remained moderate at first; however, this does not indicate a clear reaction to the new assessment.
Another buy report published the previous day set the 12-month target at 32 euros. The Q3 figures cited in that report are estimates, not results that have already been published: Revenue is forecast at 230 million euros, a 7.6 percent increase year-over-year, along with adjusted EBIT of 18 million euros, which would represent a 16.9 percent rise. The expected EBIT margin would thus be 7.8 percent.
Recovery in the UK and Growth Drivers
The study cites improved profitability in the UK, greater workforce efficiency, and lower depreciation on office leases as potential drivers of earnings growth. Latin America is expected to continue playing a key role in revenue growth. For the full year, the company’s forecast of 71 million euros in adjusted EBIT is viewed as potentially conservative; the buy-side research report, however, anticipates 73 million euros instead.
Analyst Assessment: This suggests that the market is focusing primarily on an improvement in profitability and the question of whether GFT can meet or exceed its forecast. For investors, this development means that the raised price targets reflect a positive scenario but are contingent on operational progress. Following repeated downward revisions to its forecasts for the years 2023 through 2025, the company must first demonstrate the expected momentum with its upcoming earnings reports and over the remainder of the year. Furthermore, even in the more optimistic assessment, a slowdown in profit growth in the final quarter remains possible.
AI Project Demonstrates Concrete Customer Benefits
The collaboration with Itaú Unibanco also provides insight into GFT’s strategic direction: The jointly developed Batch2Cloud solution uses AI agents to support the migration of business-critical banking systems to the cloud. According to GFT, the migration time was reduced by up to 70 percent in the first implementation phase, and project execution accelerated by up to 3.3 times. The project demonstrates a practical use case for GFT’s AI and modernization expertise. However, the available information does not indicate whether this will result in a larger, recurring revenue contribution.
