MLP SE Maintains Confidence Despite Weak Q2 EBIT

MLP SE has reported a preliminary Q2 EBIT of €5 million, significantly below last year’s €11.7 million, yet the company remains confident in maintaining its FY25 guidance. This decrease is attributed to several factors but is not seen as a major concern due to the seasonal nature of MLP's earnings distribution. Historically, the second quarter is weak with low operating leverage for MLP, contributing only a small fraction to the annual EBIT.

The lack of performance fees and a lower interest rate environment further impacted Q2 results. The banking business saw decreased net interest income, while rising IT costs temporarily increased operational expenditures. Despite these pressures, MLP sees potential in its real estate segment amid lower interest rates, though improvements are gradual.

Overall, MLP stands by its EBIT forecast of €100-110 million for the full year, supporting a "BUY" recommendation with a target price of €13.00.