GFT Technologies

GFT Technologies - IT service provider for the banking sector has an important growth driver with its new AI product. $GFT (+0%)

AI is establishing itself everywhere in both business and private life. According to Focus Money (issue 51/2024), it is a technology that is here to stay and will now also find its way into the banking sector. GFT Technologies [WKN: 580060, ISIN: DE0005800601] is the IT service provider for the banking sector that will make this possible in the coming years.

Founded in 1987, the company has always been the point of contact for banks when it comes to digitalization issues. In recent years, the SDAX-listed group has also adapted its software solutions for insurers and industrial customers.

Now the aim is to leverage the AI potential of banks with the "GFT AI Impact" solution. The AI-based product is designed to accelerate the software development process for clients. It is easy to integrate into existing software structures and can be used in a variety of ways.

According to GFT, the use of "GFT AI Impact" should lead to productivity increases of between 50% and 90% for clients. GFT was already able to acquire 10 new customers in the 3rd quarter of the current financial year. A total of over 170 license agreements have been concluded.

The AI product has the potential to become an important growth driver for the SDAX company. GFT can expect positive effects from the de-regulation plans of the new US government under Donald Trump. After all, the Trump administration wants to enable banks to earn more from 2025 onwards and will thus create financial leeway for generous investments in the company's own IT systems.

Due to GFT's strong presence in Latin America, the company could also increasingly act as an important contact for banks in the USA in the future. With a P/E ratio of 10 for 2025, the stock is valued favorably. Focus Money recommends buying with a target price of 39 euros (61% potential).

https://aktien-mag.de/blog/gft-technologies-it-dienstleister-fur-den-bankensektor-hat-mit-neuem-ki-produkt-einen-wichtigen-wachstumstreiber/p-132529

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- BOFA raises the price target for WALMART from USD 95 to USD 105. Buy. $WMT (-0,04%)

- JEFFERIES raises the price target for WALMART from USD 100 to USD 105. Buy. $WMT (-0,04%)

- HAUCK AUFHÄUSER IB raises the target price for RHEINMETALL from EUR 680 to EUR 750. Buy. $RHM (+0,42%)

- WARBURG RESEARCH raises the target price for RHEINMETALL from EUR 600 to EUR 700. Buy. $RHM (+0,42%)

- JPMORGAN raises the price target for SALESFORCE from USD 310 to USD 340. Overweight. $CRM (+0,09%)

- WARBURG RESEARCH raises the target price for LEG IMMOBILIEN from EUR 81.60 to EUR 90.50. Hold. $LEG (-0,05%)

- DEUTSCHE BANK RESEARCH raises the price target for HEIDELBERG MATERIALS from EUR 116 to EUR 137. Buy. $HEI (-0,08%)

- KEPLER CHEUVREUX raises the price target for GFT TECHNOLOGIES from EUR 31 to EUR 32. Buy. $GFT (+0%)

- ODDO BHF raises the target price for TALANX from EUR 76 to EUR 78. Underperform. $TLX (-0,06%)

- KEPLER CHEUVREUX raises the target price for THYSSENKRUPP from EUR 3.70 to EUR 3.80. Hold. $TKA (-0,05%)

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- STIFEL lowers the price target for BAYER from EUR 36 to EUR 28. Hold. $BAYN (+0,13%)

- LBBW downgrades ENI from Buy to Hold and lowers target price from EUR 16.70 to EUR 15. $ENI (-0,04%)

- WARBURG RESEARCH lowers the target price for SFC ENERGY from EUR 29 to EUR 27. Buy. $F3C (+0%)

- WARBURG RESEARCH lowers the target price for TECHNOTRANS from EUR 23 to EUR 21. Buy. $TTR1 (+0%)

- DEUTSCHE BANK RESEARCH lowers the price target for CUREVAC from USD 3.90 to USD 2.50. Hold. $CVAC (+1,66%)

- BERENBERG lowers the price target for ASTRAZENECA from GBP 150 to GBP 140. Buy. $AZN (+0,47%)

Is AI now making financial institutions better and causing a mega-revolution? $GFT (+0%)

Artificial intelligence has only been a topic on the markets for just under two years, since ChatGPT celebrated its launch. But it is already clear that the technology will disrupt the economy like perhaps no other before it. The financial sector, where personnel costs play a decisive role, could be particularly affected by this.

Is AI now making financial institutions better and causing a mega revolution? Is there a threat of significant job cuts at the same time? And how can investors best benefit from this development?

At least if you listen to the experts, the banking sector is facing a major transformation. After all, of all industries, the financial sector appears to have the greatest need for automation (see chart below). In fact, the first effects of this are already becoming apparent, as BPER Banca, an Italian banking group, has already announced its intention to save ten percent of its workforce by 2027 through technology-driven productivity improvements. A corresponding analysis by Citigroup suggested that the transformation thanks to artificial intelligence is likely to claim the most jobs in the banking sector.

The reason for this is that the majority of tasks in the financial system can be automated (see chart below).

Background: Many processes such as lending, audit processes etc. are extremely time-consuming due to the amount of data that is processed, as well as the government regulations and internal company rules that must be adhered to. It is also hoped that there will be less need for monitoring due to the lower error rate of AI compared to human decisions. AI systems will also take over the work of fraud detection in the future. The bottom line is that this will lead to significantly lower staffing requirements.

Massive efficiency gains are to be expected

However, while this is negative news for the workforce, for banks and their shareholders it means the prospect of a leap in profits. After all, German financial institutions alone spent 48.4 billion euros on their employees in 2024. In Europe, each employee costs a financial institution an average of 84,000 euros (data from 2022).

Companies have therefore already recognized their opportunity, not least due to the massive increase in demand for experts in the field of artificial intelligence.

By the way: This article appeared a few weeks ago in Euro am Sonntag. It contains weekly analyses on current topics

GFT maintains growth momentum. $GFT (+0%)

Everything negative is priced in for the IT service provider. AI projects increase organic growth. Adesso and GFT are market favorites.

Strong growth in the banking sector, launch of GFT AI Impact product accelerated

Revenue grew by 10 percent to EUR 646 million in the first nine months of 2024

Adjusted EBIT increased by 10 percent to EUR 57 million

GenKI product GFT AI Impact gains traction

Expansion of client base in the US and UK, important new contract with Bancolombia thanks to Sophos Solutions

Outlook for 2024 changed: revenue of EUR 865 million, adjusted EBIT of EUR 77 million

Stuttgart, 14 November 2024 - GFT Technologies SE (GFT) maintained its growth momentum in revenue and earnings in the first nine months of 2024 in a persistently challenging market environment. Both consolidated revenue and adjusted EBIT rose by 10 percent compared to the same period last year. This was driven by the strong performance in the banking sector, which recorded growth of 14%. Growth was particularly dynamic in Brazil, GFT's largest market, as well as in most key European markets.

GFT AI Impact is also gaining traction: this generative AI-based product, which accelerates the software development process, can increase productivity by 50 to 90 percent. It includes advanced automated prompts for story creation, code refactoring, code analysis, review and fixes as well as vulnerability checks and comprehensive program documentation. In the last quarter, GFT has won ten new customers for the product, sold over 170 licenses and is currently running more than 20 proofs of concept.

https://www.boersennews.de/nachrichten/meldungen/eqs/eqs-news-gft-haelt-wachstumsdynamik-aufrecht/4614288/

Summary Earnings, 14.11. 👇🏼

Siemens AG Q4 24 Earnings: $SIE (-0,05%)

- Orders At 22.93Bln Euros (est 21.36 Bln Euros)

- Revenue Rising 1% To 20.81 Bln Euros (est 20.77 Bln Euros)

- Profit 3.12 Bln Euros (est 3.0 Bln Euros)

- Net Income Of 1.90 Bln Euros (est 1.80 Bln Euros)

Swiss Re Q3 24 Earnings: $SREN (+0%)

- Net Income Of $2.2 Billion For The First Nine Months Of 2024

- 9m Return On Investments (ROI) Of 3.9%; Recurring Income Yield Of 4.0%

- Return On Equity (ROE) Of 13.4% For First Nine Months Of Year

- Still Expects To Achieve A Group Net Income Of More Than $3 Billion For 2024

- Currently Expects Losses Resulting From Hurricane Milton To Be Less Than $300 Mln, Which Will Impact Group Results In Q4 2024

E.ON SE 9M 24 Earnings: $EOAN (+0,07%)

- Adj EBIT EU4.37B, -23% (Y/Y)

- Sales EU56.28B, -19% (Y/Y)

- Still Sees FY Adj EBITDA EU8.8B To EU9B, (est EU8.94B)

- Still Sees FY Adj Net EU2.8B To EU3B (est 2.92B)

Deutsche Telekom AG Q3 24 Earnings: $DTE (-0,05%)

- Net Income EUR 2.957B (est EUR 2.396B)

- Adjusted EBITDA AL EU11.10B (est 11.05B)

- Rev EU28.50B (est 28.39B)

- Sees FY Adj EBITDA Al About EU43B

ASML is sticking to its long-term goals and plans to increase sales to between 44 and 60 billion euros by 2030, with a gross margin of 56 to 60 percent. Despite the current difficult market conditions, ASML CEO Christophe Fouquet sees promising long-term prospects for the semiconductor industry, especially due to the AI trend. $ASML (-0,08%)

Talanx expects a record profit of over 1.9 billion euros for 2024 and a surplus of over 2.1 billion euros for 2025. The profit increase will be supported by primary insurance and new targets are to be presented at the Capital Markets Day on December 11. $TLX (-0,06%)

Nagarro increased sales by 3.7 percent to 242.9 million euros in the third quarter and adjusted EBITDA by a good eight percent to 34.6 million euros. The company is adjusting its revenue forecast for 2024 to 960 million euros and expects an EBITDA margin of over 14 percent. $NA9 (-0,06%)

Adesso recorded an increase in turnover of 15 percent to 330 million euros in the third quarter and a 37 percent rise in operating profit to 38.9 million euros. Jörg Schroeder will step down as Chief Financial Officer on April 30, 2025; his successor will be Michael Knopp from January 15, 2025. $ADN1 (+0%)

Dermapharm increases turnover in the first nine months by just under three percent to 890.1 million euros, while adjusted EBITDA falls slightly to just over 240 million euros. However, consolidated net income rose to just under 93 million euros, and the Group CEO is optimistic for the final quarter. $DMP (-0,06%)

Energiekontor sees itself on course for its annual targets after nine months with an expected pre-tax result of EUR 30 to 70 million, although the upper end of the range will not be reached due to the below-average wind year. Three projects with 79 MW have already been commissioned this year and several more projects are currently being marketed. $EKT (+0%)

The financial services provider MLP increased revenue by twelve percent to EUR 746 million in the first nine months and EBIT by almost half to EUR 66 million. The company confirms its forecast for 2024 with EBIT of between EUR 85 and 95 million and expects EBIT of EUR 100 to 110 million in 2025. $MLP (+0%)

GFT Technologies is again lowering its annual targets and now expects revenue growth of 10 percent to around EUR 865 million and adjusted EBIT of around EUR 77 million. Profit before taxes is expected to fall to around EUR 65 million, as the environment remains challenging and momentum in the coming months will be lower than expected. $GFT (+0%)

ProSiebenSat.1 is lowering its forecast for the year due to weak TV advertising revenues and expects an adjusted operating result of less than EUR 575 million. The Group plans to sell Flaconi and Verivox in order to invest in Joyn, programs and debt reduction. $PSM (-0,05%)

Wacker Neuson is again lowering its annual targets and now expects revenue of EUR 2.2 to 2.3 billion and an EBIT margin of 5.5 to 6.5 percent. In the third quarter, the company reports a drop in revenue of over 20 percent and a 61 percent fall in EBIT. $WAC (+0%)

Cewe confirms its annual targets with sales of between 770 and 820 million euros and an EBIT of 77 to 87 million euros, with the upper half of the ranges being targeted. The company generates most of its profits in the Christmas quarter and posts a marginally positive EBIT in the summer quarter, despite increased marketing expenditure. $CWC (-0,1%)

Merck KGaA reports a 1.8 percent increase in sales to 5.3 billion euros in the third quarter, while the adjusted operating result rises by 12 percent to over 1.6 billion euros. CEO Belén Garijo announces that sales for 2024 are expected to be in the lower half of the previous range. $MRK (+1,07%)

Bilfinger records revenue growth of 15 percent to just under EUR 1.3 billion in the third quarter and increases operating profit by 35 percent to EUR 76 million, supported by good demand and the latest acquisition. The Executive Board confirms the adjusted annual targets with an increase in revenue to EUR 4.8 to 5.2 billion for 2024, also taking into account a savings program and special effects from the integration of Stork. $GBF (-0,27%)

K+S is revising its production forecast for 2024 downwards due to high sickness rates and now expects an operating result (EBITDA) of around EUR 540 million. In the third quarter, the company reports a decline in sales and EBITDA, with profits exceeding analysts' expectations but remaining below consensus estimates for the full year. $SDF (-0,05%)

GFT Technologies uses NVIDIA AI for groundbreaking financial and manufacturing solutions.

$GFT (+0%)

GFT Technologies and NVIDIA are joining forces to shape the future of finance and manufacturing with innovative AI solutions. Together they are setting new standards in quality and efficiency.

GFT Technologies is partnering with NVIDIA to develop advanced AI solutions for the finance and manufacturing industry.

The collaboration uses NVIDIA AI Enterprise and Omniverse platforms to create customized AI applications.

For the manufacturing industry, digital twin technologies and visual inspection tools will be used to improve quality and efficiency.

GFT will also customize large-scale language models (LLMs) for banks and insurance companies to improve fraud prevention and customer service.

GFT has established itself as a global leader in AI and data analytics and has been recognized by ISG as a leader in this field for three consecutive years.

The collaboration aims to set new standards in digital innovation and create fresh growth opportunities for clients.

The next important date, publication of the quarterly financial report (reporting date Q3), at GFT Technologies is on 14.11.2024.

https://www.wallstreet-online.de/nachricht/18700042-gft-technologies-nvidia-ai-bahnbrechende-finanz-fertigungsloesungen

Analyst updates, 05.11.

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- ODDO BHF raises the price target for BIONTECH from USD 110 to USD 130. Outperform. $BNTX (-0,98%)

- BARCLAYS raises the price target for AIRBUS from EUR 161 to EUR 165. Overweight. $AIR (+0,07%)

- CITIGROUP raises the price target for SCOUT24 from EUR 91 to EUR 94.50. Buy. $G24 (-0,06%)

- WARBURG RESEARCH raises the price target for REDCARE PHARMACY from EUR 174 to EUR 176. Buy. $RDC (-0,08%)

- DEUTSCHE BANK RESEARCH raises the price target for RYANAIR from EUR 17 to EUR 17.50. Hold. $RYA (-0,41%)

- BERNSTEIN rates EBAY from Market-Perform to Outperform. Target price USD 70. $EBAY (-0,56%)

- ODDO BHF raises the price target for SALZGITTER from EUR 14 to EUR 15.50. Underperform. $SZG (-0,06%)

- BARCLAYS raises the target price for COMMERZBANK from EUR 16 to EUR 17. Equal-Weight. $CBK (+0,06%)

- BARCLAYS raises the target price for MTU from EUR 295 to EUR 340. Equal-Weight. $MTX (-0,05%)

- MORGAN STANLEY rates LUFTHANSA to Equal-Weight. Target price EUR 7. $LHA (-0,03%)

- BERENBERG raises the price target for DEUTSCHE KONSUM REIT from EUR 3.50 to EUR 5. Hold.

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- GOLDMAN lowers the price target for MERCEDES-BENZ from EUR 65 to EUR 63. Buy. $MBG (-0,07%)

- UBS lowers target price for 1&1 from EUR 21.60 to EUR 21. Buy.

- WARBURG RESEARCH lowers the price target for GFT TECHNOLOGIES from EUR 40 to EUR 37.50. Buy. $GFT (+0%)

- HAUCK AUFHÄUSER IB lowers the price target for ECKERT & ZIEGLER from EUR 63.50 to EUR 55. Buy. $EUZ (-0,09%)

- BARCLAYS lowers the price target for BNP PARIBAS from EUR 90 to EUR 85. Overweight. $BNP (-0,71%)

- BERENBERG downgrades SCHNEIDER ELECTRIC from Buy to Hold and lowers price target from EUR 261 to EUR 255. $SU (-0,06%)

- BERENBERG lowers the price target for BEFESA from EUR 41 to EUR 31. Buy. $BFSA (+0,2%)

Is this the turnaround at GFT

$GFT (+0%)

26.09.24 16:00

Global Stock Exchange

GFT Technologies SE recorded a significant price increase of 6.56% to EUR 23.15 on September 26, 2024. The IT service provider benefited from better-than-expected quarterly figures and an optimistic outlook for the year as a whole. Despite the challenging market environment, GFT was able to increase its revenue by 11% to EUR 429.6 million in the first half of the year. The adjusted operating result (EBIT) even increased by 15% to 35.73 million euros.

Growth drivers AI and digitalization

According to the company, the areas of Next Generation Core Banking, technology modernization as well as AI and data developed particularly well. Co-CEO Marco Santos emphasized: "Our core business is healthy and our products and solutions continue to grow." The Executive Board continues to expect significant growth in revenue and profit for the year as a whole. Analysts consider the GFT share to be attractively valued with a P/E ratio of 9.89 for 2024.

BERENBERG rates GFT TECHNOLOGIES AG as a 'Buy'

https://www.wallstreet-online.de/nachricht/18523954-berenberg-stuft-gft-technologies-ag-buy

WARBURG RESEARCH rates GFT TECHNOLOGIES AG to 'Buy'

https://www.wallstreet-online.de/nachricht/18510540-warburg-research-stuft-gft-technologies-ag-buy

https://www.gft.com/de/de/about-us/news

GFT and Engenion won three awards at the Globee Awards for Technology: Most Innovative Company of the Year - Cloud/SaaS, in the Project and Portfolio Management category and for Most Innovative IT Software.

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Which ones do you have in your portfolio or on your watchlist?

I sold Infineon and Elmos too early.

GFT lowers annual targets.

$GFT (+0%)

There is no end to the bad news.

https://www.wallstreet-online.de/nachricht/18358257-it-dienstleister-gft-jahresziele-umsatz-ergebniszuwachs-halbjahr