We hosted a digital roadshow with VOQUZ Labs CEO Martin Kögel, which provided valuable insights into the investment case. Here are the takeaways:

• Current trading remains on a strong level after we already saw a pick-up in demand in H2 ’23 (+14% sales vs +3% in H1) as Mr. Kögel confirmed the company’s growth ambitions (10-20% yoy in ‘24e). The latter looks set to be mainly driven by further key account wins for the company’s  flagship solution samQ, but also an improved contribution from visoryQ and remQ, which should be supported by the recently announced partnership with PwC (see our latest

  update

  ).
• visoryQ to drive growth and margins. The self-developed solution was first launched in Q4 ’22 and already contributed c. € 0.5m sales in FY ’23 (eNuW). Mind you, visoryQ is an SAP-ERP business case builder, providing in-depth scenario analyses for clients in order to optimize TCO. Especially when it comes to the S/4HANA transformation, it offers valuable decision support regarding the optimal strategy and should hence be in brisk demand of yet to migrate customers given the economic significance of the conversion. As the transformation is seen to accelerate in the coming quarters, VOQUZ looks set to be a main beneficiary, as we expect visoryQ sales to develop dynamically at a 65% CAGR ‘23p-26e.
• M&A: With the acquisition of remedyne in 2023, VOQUZ tipped off its pursued buy and build strategy, which it intends to continue in 2024, as Management is already screening the market for possible targets. VOQUZ  is seen to target companies in the SAP add-on space in order to facilitate cross-selling potential. Moreover,  acquired solutions should be internationally applicable without any specific industry focus industry focus. While smaller targets like remedyne (€ 0.3m acquisition volume) could be financed out of the CFO, CEO Kögel intended that the company would likely need to tap the capital market in order to perform a larger acquisition.

Considering the excellent growth prospects of the company as well as the high scalability of the business model, the stock looks undervalued trading on a mere 1.9x EV/Sales and 12.0x EV/EBITDA ‘24e (1.4x/7x based on FY25e) while providing attractive returns on the other hand.

We hence reiterate BUY with an unchanged PT of € 22.00 based on DCF.