First Berlin Equity Research has published a research update on 2G Energy AG (ISIN: DE000A0HL8N9). Analyst Dr. Karsten von Blumenthal upgraded the stock to BUY and maintained his EUR 31.00 price target.
2G’s most impressive half-year figure in our view is total output. This rose by 24% y/y to €138m. Thanks to inventory build-up and increased production efficiency, 2G achieved this record figure despite an environment characterised by supply chain problems. Another positive is the increase in the lower end of the sales guidance from €280m to €290m. A record order book of €221m (+48% y/y) ensures full capacity utilisation well into next year. Expansion investments (acquisition of two plots of land) enable further growth in production and service on site at Heek. High gas prices make highly efficient and thus primary energy-saving CHP plants attractive compared to the uncoupled production of electricity and heat. We confirm our price target of €31 and upgrade our recommendation from Add to Buy (upside potential now >25%).
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