Cenit AG: Significant Earnings Improvement Expected Post-2025 Transition Year

Cenit AG, a prominent player in the software industry, is projected to experience a notable enhancement in earnings following the transitional year of 2025. The 2024 fiscal year saw a 12.2% increase in sales, reaching €207.33 million, with organic growth slightly surpassing expectations at 5.2%. This growth was bolstered by recent acquisitions contributing significantly to the sales figures.

Despite a 5.2% increase in EBITDA, the company faced challenges with a 19.9% decline in EBIT, primarily due to write-downs on financial instruments. Looking ahead, Cenit AG plans to pause M&A activities, focus on profitability, and expect sales to rise to between €229 million and €234 million in 2025. The buy rating is maintained with a target price of €19.00 per share.