European Tech Stocks Thrive as ECB Cuts Rates: A Trio of High-Growth Plays

The European Central Bank's (ECB) surprise rate cut on June 5—reducing the deposit rate to 2.00%—has sent ripples through markets, lowering borrowing costs for companies and investors alike. For European tech stocks, this shift creates a prime environment to capitalize on underappreciated growth stories. Three companies—Oryzon Genomics (ORY.MC), Nemetschek SE (NEMG), and CM.com (CMCOM.AS)—are positioned to leverage both monetary easing and sector-specific tailwinds. Their strong R&D investments, niche market dominance, and accelerating financial metrics make them compelling buys ahead of broader recognition.

The ECB Catalyst: Lower Rates, Higher Tech Appetite

The ECB's decision to cut rates marks a pivot from 2024's tightening cycle, driven by cooling inflation (now at 1.9%). With financial conditions easing, tech firms—especially those in capital-intensive R&D—gain breathing room. For companies like Oryzon and CM.com, which rely on sustained R&D spending, lower borrowing costs could accelerate innovation timelines. Meanwhile, Nemetschek's SaaS-driven model benefits from broader corporate spending stability in a less rate-sensitive environment.

Oryzon Genomics: Epigenetic Breakthroughs on the Horizon

What's Driving Growth?
Oryzon's pipeline of epigenetic therapies—targeting CNS disorders and oncology—is advancing rapidly. Its lead asset, vafidemstat, is nearing pivotal Phase III trials in Borderline Personality Disorder (BPD), with FDA submission expected by mid-2025. The company also expanded its intellectual property, adding patents for ADHD and autism spectrum disorder. In oncology, its iadademstat is being tested in small cell lung cancer and acute myeloid leukemia (AML) trials, supported by partnerships with institutions like Memorial Sloan Kettering.

Financial Fortitude:
Recent capital raises (€30M equity round) and a €13.26M EU grant (via the Med4Cure IPCEI program) have bolstered its cash position to ~€50M. While losses remain (€1.6M in Q1 2025), this is typical for pre-commercial biotechs. With clinical readouts expected in 2025–2026, a positive outcome could trigger valuation re-rating.

Nemetschek SE: Construction Tech's SaaS Revolution

Why It's a Buy:
Nemetschek's transition to SaaS is paying off. Q1 2025 revenue surged 26% to €282.8M, with subscription revenue up 84%. Its Build segment—bolstered by the GoCanvas acquisition—grew 66%, while its AI-driven Design tools (e.g., Allplan, Vectorworks) are capturing market share. The company's AI & Data Innovation Hub and geographic expansion (e.g., India) further solidify its edge.

Margin Expansion Ahead:
Despite a mid-single-digit EBITDA drag from a payment provider's insolvency, Nemetschek reaffirmed its 2025 targets: 17–19% revenue growth and a 31% EBITDA margin. As SaaS penetration matures, margins should normalize. With free cash flow up 69% Y/Y to €139M in Q1, the company is primed to invest in R&D and acquisitions.

CM.com: AI-Powered Commerce at a Tipping Point

The AI Edge:
CM.com's shift to an “AI-First” strategy via its HALO platform is delivering results. AI agents now manage compliance, HR, and legal functions, cutting costs and boosting efficiency. This helped drive a 63% YoY EBITDA jump in Q1 2025 despite transactional headwinds. Its Conversational Commerce platform connects global enterprises to consumers via messaging and payments, a space growing as e-commerce matures.

Catalysts Ahead:
The May 15 Capital Markets Day and May 9 AGM will likely highlight AI advancements and 2025 guidance. With refinancing completed and ARR up 8%, CM.com is well-positioned to scale its AI initiatives, which could unlock higher margins in 2026.

Risks and the Bottom Line

• ECB Policy Pause: While the ECB's “data-dependent” approach suggests further cuts are possible, a pause could temper tech enthusiasm.
• Trial Failures: Oryzon's clinical trials carry execution risk.
• Geopolitical Drag: Nemetschek's exposure to construction markets in volatile regions like Ukraine adds macro uncertainty.

Despite these risks, the confluence of ECB easing, sector-specific catalysts, and strong fundamentals makes these stocks attractive. For investors, this trio offers a mix of near-term financial momentum (Nemetschek, CM.com) and long-term innovation upside (Oryzon). With European tech valuations still laggards compared to U.S. peers, now is the time to position ahead of broader recognition.

Investment Thesis:
- Buy Oryzon Genomics (ORY.MC): For investors with a 2–3 year horizon, its clinical catalysts and EU grant-backed pipeline justify a speculative bet.
- Add Nemetschek SE (NEMG): A core holding for SaaS growth, with margin expansion and AI-driven innovation.
- Consider CM.com (CMCOM.AS): A high-risk, high-reward play on AI-driven efficiency and conversational commerce.

The ECB's pivot has created a window to buy European tech at a discount. These three stocks are prime candidates to benefit from both monetary tailwinds and their own innovation cycles.