First Berlin – 2G Energy AG Research Update (14/03/2018)

First Berlin Equity Research has published a research update on 2G Energy AG (ISIN: DE000A0HL8N9). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 24.00 to EUR 24.50.

2G Energy's 2017 revenue was even higher than expected. It will probably reach €189m, surpassing the record 2014 level. Higher sales positively impacted the EBIT margin, which could now be as high as 4%. Previously, we had assumed 3.5%. The clearly positive effects of the internationalisation strategy and internal efficiency enhancement programs were already visible in 2017 and thus earlier than expected. We confirm our Buy recommendation and increase the price target to €24.50 (previously: €24.00).