Original-Research: EPH Group AG (von NuWays AG): Buy

Classification of NuWays AG to EPH Group AG

Company Name:	EPH Group AG
ISIN:	AT0000A34DM3
Reason for the research:	Update
Recommendation:	Buy
from:	21.11.2025
Target price:	EUR 102
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Founded in 2023 and headquartered in Vienna, EPH Group AG (EPH) is a newly established hospitality real estate developer focused on the DACH region. Hereby, the company is operating in the most profitable phase of real estate development by focusing on creating value where the steepest valuation uplift occurs: securing prime land plots, obtaining permits, designing high-end resort concepts, and signing long-term agreements with top-tier international hotel brands. By exiting projects once these milestones are achieved - typically before construction begins - the company maximizes asset monetization while minimizing capital intensity, execution risk, and balance sheet exposure.

This capital light approach enables EPH to achieve high developer margins of around 50% (eNuW) on acquisition and development costs with only short project durations of < 24 months on average. Structured via SPVs, each project moves through a disciplined acquisition - de-risking - disposal cycle, converting planning expertise and market access into quick capital turnover and recurring cash flows.
EPH is on track to progress from its current platform build-up phase to a scalable, recurring development model. While the current pipeline comprise six projects, we model one project acquisition per quarter from Q1’26e forward, ensuring steady replenishment of land plots, as we expect first project disposals from Q3’26e onwards.

The attractiveness of the business model currently coincides with a highly attractive market environment, as the luxury and upper-upscale hospitality segment in the DACH region is projected to grow at a 4-6% CAGR, supported by record overnight stays, constrained new offering, and surging institutional appetite for branded, income generating resort assets. Prime alpine, lakeside, and other destinations in DACH are in high demand of both, international hotel operators and long-term, institutional investors. This not only builds the foundation of EPH’s expansion strategy, but also unlocks upside potential.

Looking ahead, EPH’s growth trajectory is set to accelerate with the first project sales in FY26e (eNuW: € 6.5m development income) and further projects reaching maturity in FY27e. Thereafter, we expect a steady, rolling pipeline of six projects running in parallel, which should leave certain upside should the company expand capacities.

As volumes ramp up, we also see returns to improve sharply, visible in ROICs exceeding costs of capital from FY27e onwards. Combined with the capital-light set up, this should translate into structurally rising earnings and cash flows as the company evolves from a start-up to a leading developer of institutional-grade leisure hospitality assets in the DACH region.

Against this backdrop and by anticipating future project sales, we initiate EPH with BUY and a PT of € 102 based on DCF.
 

You can download the research here: ephgroupag20251121fullnoteinitiationen4bcc1
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
++++++++++
Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++