First Berlin – 2G Energy AG Research Update (04/05/2021)

First Berlin Equity Research has published a research update on 2G Energy AG (ISIN: DE000A0HL8N9). Analyst Dr. Karsten von Blumenthal downgraded the stock to ADD but increased the price target from EUR 104.00 to EUR 108.00.

2G Energy has published its annual report. The company had already reported key figures in advance. The 2020 net result of €12m was ca. €1m above our forecast due to lower taxes than we modelled. 2021 has started very dynamically for 2G with preliminary Q1 sales amounting to €43m, which corresponds to a strong increase of 35% y/y. This lends credence to our 2021 sales forecast, which is at the upper end of guidance of €245-260m. We confirm our 2021 forecast for a slight EBIT margin increase to 6.8% (company guidance: 6.0%-7.5%). Incoming orders rose by 3% y/y to €46.4m in the first quarter. An updated DCF model yields a new price target of €108 (previously: €104). Due to the share price increase since our last publication, the upward potential to our price target is now below 25%. We therefore downgrade our rating from Buy to Add.