Hello my dears I am invested myself, and continue to be Bulgarian.
A lot is happening behind the scenes at GFT Technologies: The still quite new Executive Board member Marco Santos is setting several levers in motion to continue the growth strategy in the medium term. In particular, the focus on the megatrend of artificial intelligence (AI) is generating imagination - and more and more analysts are coming to the same conclusion.
An encouraging analyst commentary from Berenberg Bank is giving the GFT Technologies share new momentum today. Analyst Wolfgang Specht has raised the price target from 27 to 28 euros and confirmed the buy recommendation. The early initiatives to equip its own employees with AI skills should prove to be a considerable advantage for the software provider, according to the strategist - as the corresponding demand continues to rise. Background: GFT aims to position itself as a leader in AI-centric digital transformation by integrating generative AI solutions into its service offering and focusing its portfolio on more profitable, high-value services.
Fittingly, the financial sector is undergoing a fundamental transformation thanks to AI. While other industries have already gone through extensive automation cycles in the past, the financial industry is now noticeably catching up in terms of digitalization - especially in the areas of customer service, compliance and risk management. With specific AI solutions - such as chatbots to automate processes, applications for fraud detection and compliance processes - society could achieve significant growth in the future.
"We need to move forward. In recent months, we have invested a lot of time and energy in developing our new 5-year strategy to make GFT a fully AI-centric company and create the conditions to benefit significantly from the AI revolution," the CEO continued.
In the short term, however, the measures are likely to have a negative impact on margins - but CEO Santos expects a significant improvement in profitability from 2026. GFT Technologies aims to increase revenue to around 1.5 billion euros by 2029. Of this, 9.5 percent (around 143 million euros) is to be retained as earnings before interest and taxes (EBIT) adjusted for special effects. Half of the turnover could then already be generated with more profitable AI offerings. In the current year, revenue is expected to increase by seven percent to around 930 million euros. Of this, 68 million euros is likely to remain as adjusted EBIT - twelve percent less than in 2024. This results in an adjusted EBIT margin of 7.3 percent.
CONCLUSION
With a 2025 P/E ratio of 17 - which should fall to 13 in the coming year - the shares are currently trading at a considerable discount to the sector. The share buyback program launched in April has therefore come at the right time. In addition, there has recently been speculation in financial circles about a possible interest in GFT Technologies (free float: 64 percent) on the part of financial investor Thoma Bravo. However, with the jump above the short-term downward trend, the chart picture has now also brightened noticeably. If the bulls remain in control, the 26-euro mark could be approached quickly. Berenberg Bank's price target will then come into focus.
