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 maintained his EUR 34.00 price target.
2G Energy increased its Q3 revenue y/y by 1% to €77.6m despite the high prior year figure. On a nine month basis, revenue grew 12% y/y to €213m, making it likely that the upper end of the revenue guidance of €310m – €350m will be reached. Q3 EBIT increased by 14% y/y to €4.0m. On a 9M basis, EBIT rose as much as 33% to €8.1m. With the confirmed sales and EBIT margin guidance for 2024 and sales guidance for 2025 (€390m to €430m) already published, 2G offers a high degree of visibility regarding the planned business development. We maintain our forecasts for the current year but have raised our costs of materials estimate for 2024E and so reduce our EBIT margin assumption from 9.8% to 9.3%. An updated DCF model yields an unchanged €34 price target. With double-digit sales growth and EBIT margin expansion, 2G remains a clear Buy.