First Berlin – 2G Energy AG Research Update (09/06/2021)

First Berlin Equity Research has published a research update on 2G Energy AG (ISIN: DE000A0HL8N9). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and increased the price target from EUR 108.00 to EUR 109.00.

2G Energy has raised its short- and medium-term sales guidance and acquired the shares in HJS Motoren it did not already own. The lower end of the sales guidance for 2021 increases from €245m to €250m, the upper end remains at €260m (FBe: €260m). EBIT margin guidance remains unchanged at 6.0% - 7.5% (FBe: 6.8%). Revenue guidance for 2024 increases from €300m to €330m (FBe: €385m) with an unchanged EBIT margin expectation of 10%. For the first time, 2G has published guidance for 2026. The company expects sales of €400m with an EBIT margin of 8.5% - 10.0%. In addition, 2G has fully acquired HJS Motoren (share previously: 50%), which generated sales of €7.3m and a double-digit EBIT margin in 2020. The visibility of 2G's growth path has increased. This confirms our positive view on the company. With unchanged estimates, we raise the price target from €108 to €109. We confirm our Add recommendation.