First Berlin Equity Research has published a research update on The Platform Group SE & Co. KGaA (ISIN: DE000A40ZW88). Analyst Alexander Rihane reiterated his BUY rating and decreased the price target from EUR 20.00 to EUR 19.00.

Abstract
The Platform Group published record Q1 results, which exceeded our estimates. Revenue rose 51% y/y to €243m (FBe: €219m) with AEBITDA coming in at €21.8m (+37% y/y). This puts TPG well on track to meet its 2026 guide (revenue: €1bn; AEBITDA: €70m – €80m). The war in Iran has increased both the cost of debt and distribution costs, prompting TPG brass to work on actively reducing bank liabilities and place more focus on logistics. Two key levers for reducing logistics costs are: (1) increasing average order volume (currently: €128; +2% y/y); and (2) further increasing usage of the centralized warehouse in Gladbeck. TPG has several term sheets for the financing of the AEP deal on the table, which it is currently evaluating. There are also several closing conditions which are still outstanding, but management expect completion in late Q2 or early Q3. We have increased our cost of debt estimates, leading to an increased WACC estimate of 11.1% (previously: 10.7%). An updated DCF model yields a reduced price target of €19 (previously: €20). We maintain our Buy rating (upside: >550%).