20.10.2025 / 09:00 CET/CEST Dissemination of a Research, transmitted by EQS News – a service of EQS Group. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.
Reason for the research: Update Recommendation: BUY from: 20.10.2025 Target price: EUR 6.00 Target price on sight of: 12 months Last rating change: Analyst: Christian Sandherr
Temporary headwinds from regulatory uncertainty; chg. est.
To recap: SYNBIOTIC is a European holding company active in the medical cannabis and industrial hemp markets with twelve holdings. Following the recent organizational restructuring, the group is now positioned along the end-market value chains, ranging from cultivation to processing, product development, and distribution. This structure enables SYNBIOTIC to leverage synergies across its portfolio and maintain control over key value-adding steps within its business model.
Short-term headwinds. While the company recorded a good start to the year, particularly within the Medical Cannabis segment, which strongly benefited from last year’s regulatory changes, demand has recently softened. This can be explained by significantly more cautious order behavior from customers, particularly online pharmacies, as a direct result of the proposed regulatory step back. The proposal would prohibit the distribution of medical cannabis through online channels and restrict the issuance of digital prescriptions via telemedicine, both important drivers of growth so far. In parallel, the anticipated liberalization of industrial hemp, which was expected to unlock additional growth opportunities, has so far not materialized.
As a consequence, SYNBIOTIC reduced its FY25 guidance to EUR 17m in sales (old: EUR 30m, eNuW old: EUR 23m) and now expects an EBITDA loss of EUR 1.5m (old: EUR 1.7m profit, eNuW old: EUR 1.8m profit). This marks a notable downward revision, reflecting both softer market dynamics and the cautious stance of management in light of ongoing political uncertainty.
Looking ahead, we continue to expect SYNBIOTIC to remain on a growth path. Assuming the proposed regulatory changes in the medical cannabis market are implemented, we would anticipate lower new patient growth rates and a moderate deterioration of the existing patient base as online access becomes restricted. Nonetheless, SYNBIOTIC should begin to reap the benefits of its recent product development activities. Notably, the company has developed a cannabis pastille, offering an alternative form of THC administration that improves dosing accuracy and patient convenience. The product is expected to reach the market in early 2026 and could represent a meaningful addition to SYNBIOTIC’s medical portfolio.
At the same time, we view the delays in industrial hemp liberalization as temporary. The expected legislative changes should create a more supportive environment for hemp-based consumer products, thereby enhancing SYNBIOTIC’s growth prospects from 2026 onwards. Overall, we forecast the group’s top line to reach EUR 25m by 2027e, implying a 16% CAGR (2025-27e), alongside an EBITDA of EUR 1.2m, as profitability gradually recovers with improved scale and operating leverage.
We confirm our BUY rating with a new EUR 6.00 PT (old: EUR 12.40) based on DCF as we take a notably more conservative stand to account to uncertainties going forward.
You can download the research here: https://eqs-cockpit.com/c/fncls.ssp?u=65c062bf5d2aa1057e425a2547519272 For additional information visit our website: https://www.nuways-ag.com/research-feed
Contact for questions: NuWays AG – Equity Research Web: http://www.nuways-ag.com Email: [email protected] 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. ++++++++++
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