First Berlin – 2G Energy AG Research Update (30/09/2019)

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 38.00 to EUR 39.00.

2G Energy presented very convincing H1 figures that exceeded our estimates. Sales increased by 14% y/y to almost €96m and EBIT rose to €2.9m after €1.1m in H1/18 (+158% y/y). A still high order backlog of €151m ensures full capacity utilisation far into 2020. The company confirmed guidance (sales in the upper range of €210-230m, EBIT margin of 5.5%-7.0%). We view the strong half-year figures as confirmation of our forecast for the full year. An updated DCF model results in a new price target of €39.00 (previously: €38.00). We confirm our Add recommendation.