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NFN: AI Project Momentum Will Support Profits Despite Softer Cloud Telephony

AI And Cloud Will Shape Secure European Communications

NFN logo
NFN
AnalystConsensusTarget
Not Invested
Published 17 Feb 2025

Update shared on 14 Dec 2025

Fair value Decreased 19%
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AnalystConsensusTarget's Fair Value
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1Y
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7D
-3.6%

Analysts have trimmed their price target on NFON from €9.90 to €8.03, citing slightly softer expectations for revenue growth, slimmer profit margins and a lower future P E multiple.

What's in the News

  • Management Board lowers 2025 Group revenue growth guidance to 1.0% to 2.5%, down from 3% to 5%, after weaker than expected third quarter revenue in core cloud telephony, despite solid AI driven project business momentum (company guidance).
  • NFON reaffirms its medium term targets, even as it acknowledges a persistently challenging market with subdued investment activity among customers (company guidance).
  • Chief Technology Officer Andreas Wesselmann to become Chairman of the Management Board (CEO) on October 1, 2025, following an early contract extension through 2030 after the current CEO requested early termination (company announcement).
  • Alexander Beck appointed new Chief Financial Officer, effective October 1, 2025, succeeding Patrik Heider, who also requested early contract termination to pursue other opportunities (company announcement).

Valuation Changes

  • Fair Value Estimate reduced from €9.90 to approximately €8.03, indicating a moderate downward revision to the target valuation.
  • Discount Rate increased slightly from 4.76 percent to about 5.11 percent, reflecting a marginally higher perceived risk profile or required return.
  • Revenue Growth Assumptions trimmed modestly from around 8.44 percent to about 8.15 percent, pointing to slightly softer top line expectations.
  • Net Profit Margin lowered significantly from roughly 9.34 percent to about 7.57 percent, implying a more cautious view on future profitability.
  • Future P E Multiple cut markedly from about 21.3x to roughly 15.3x, signaling a notable de rating of NFON’s earnings outlook.

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