First Berlin Equity Research has published a research update on swissnet AG (ISIN: CH0451123589). Analyst Christian Orquera reiterated his BUY rating and maintained his EUR 18.50 price target.

Abstract
Swissnet Group (formerly beaconsmind) has announced that it is expanding into the Moroccan market through its subsidiary Lokalee, which provides AI-powered concierge services for the hospitality industry. The move is facilitated by a partnership with Aleph Hospitality, the largest independent hotel management company in the Middle East and Africa. Lokalee’s platform is initially being integrated into Moroccan hotels managed by Aleph, with plans for further expansion across Aleph’s portfolio of >30 hotels and eight countries in the region. Morocco’s booming tourism sector with 14.5m international visitors in 2023 represents a promising opportunity for Lokalee and the Swissnet Group’s international growth strategy. This partnership with Aleph underpins Swissnet’s 2025 outlook, which envisages strong organic revenue growth of ~40%, with revenue and EBITDA expected to reach ~CHF27.5m and ~CHF6.7m respectively. The company recently announced that recurring revenues now account for an impressive >75% of its business, making it more predictable. Given this positive news, we believe management is on track to deliver the promised results. On the basis of unchanged estimates, we reiterate our price target of €18.50 and our Buy recommendation.