First Berlin – MBH Corporation Plc Research Update (27/06/2019)

First Berlin Equity Research has initiated coverage on MBH Corporation Plc (ISIN: GB00BF1GH114). Analyst Christian Orquera placed a BUY rating on the stock, with a price target of €2.25.

Abstract
MBH Corporation plc (MBH) is a publicly listed holding company headquartered in London, England, which invests in small and medium- sized private companies (SMEs) with sound management and established business models. MBH envisages gaining substantial size in accordance with the Agglomeration Model, a proprietary methodology for acquiring and growing businesses in diverse sectors. Based on the Agglomeration Model, MBH acquires portfolio companies using its own shares, offering private companies the opportunity to benefit from the advantages of being part of a large listed group such as MBH. The primary focus of MBH is the acquisition of 100% holdings in profitable well managed companies within four core business sectors: education, construction services, engineering and telecommunications, media & technology (TMT). However, if attractive opportunities emerge, the company will also be keen to expand to other sectors. Since late 2018, MBH has successfully fully acquired its first six companies based in the UK, New Zealand and Singapore/Papua New Guinea within the education, construction and engineering sectors. All six companies are profitable. MBH intends to conduct a large number of accretive acquisitions during 2019, which should give the group critical mass and support the growth of the acquired companies. We believe MBH represents an attractive value proposition for investors. We initiate coverage of MBH with a Buy rating and a €2.25 price target.