First Berlin Equity Research has published a research update on Verve Group SE (ISIN: SE0018538068). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 4.90 to EUR 5.40.

Abstract
Verve published preliminary Q2 KPIs well above FBe and the street. Sales rose 27% in the June-Quarter spurred by a 33% Y/Y jump in large software clients to 851. Earnings were even stronger with AEBITDA climbing 37%. The Q2 beat prompted Verve to up its 2024 guidance to sales of €400m to €420m and AEBITDA of €125m to €135m (old: €380m to €400m; €115m to €125m). Earlier this summer, Verve surprised with the takeover of US-based Jun Group. Investors were initially nonplussed by the deal, but the stock caught a bid about a week after the announcement, which sent Verve shares some 60% higher. We see this as a sign that the equity story is finally resonating with investors, who should be further cheered by yesterday’s news. Recalibrated FBe points to a €5.4 TP (old: €4.9). We are Buy-rated on Verve.