A domain ready for the AI era; initiate at Buy

研报英文原文证据摘录

A domain ready for the AI era; initiate at Buy

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IONOS

A domain ready for the AI era; initiate at

Buy

Initiating Coverage: BUY | PO: 37.00 EUR | Price: 28.60 EUR

An European digitalisation one-shop stop for SMB 13 July 2026

We initiate coverage on IONOS with a Buy rating and €37 DCF-based PO implying 29% Equity

upside potential. IONOS offers an attractive earnings compounding story. We expect

revenues to grow c8% CAGR (2025–2028E), while adjusted EPS compounds at c17% VictorResearchCheng,AnalystCFA >>

over the same period, driven by operating leverage underpinning a 9.4% adj. EBITDA MLI (UK)

CAGR 2024-28E, declining interest expense as the balance sheet deleverages and +44victor.cheng@bofa.com20 7996 0272

ongoing buybacks. At 8x FY26 EV/EBITDA, stock trades materially below web specialist Frederic Boulan, CFA >>

peers (14x) and European software peers (11x) respectively despite faster EPS growth. Research Analyst

MLI (UK)

We see substantial long-term upside on valuation as IONOS executes on its growth +44 20 7995 7101

plans. Key growth drivers include: (1) AI upselling opportunities, as IONOS infuse AI frederic.boulan@bofa.com

solutions across most WP&P offerings; (2) cross-sell into higher value adjacent solutions, Aditya Buddhavarapu, CFA >>

Research Analyst

(3) Cloud reacceleration on growing AI and sovereign cloud demand. MLI (UK)

+44 20 7995 7318

WP&P: solid growth in the core business aditya.buddhavarapu@bofa.com

Carla Courthial >>

Despite general AI concerns on demand for Web solutions, we believe IONOS core Research Analyst

business Web Presence & Productivity (WP&P) can sustain its growth over the medium MLI (UK) 44 77 6120 0059

term given IONOS’ competitive advantage through its brands, scale and product carla.courthial@bofa.com