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 31.00 price target.
2G Energy generated very high sales of €79m in Q3, an increase of more than 53% compared to the prior year quarter. In the first nine months, sales increased by 22% y/y to €193m. With Q4 being by far the strongest quarter of the year (Q4/21: €108m), 2G should achieve sales close to €310m, which is the upper end of the 2022 guidance range. Revenue guidance for 2023 is €310m - €350m, which is consistent with our estimate of €335m. For 2024, 2G now expects revenue of up to €390m at an EBIT margin of 8.5% to 10% (previously: €330m at 10% EBIT margin). We are close to the upper end of the 2024 guidance with our revenue forecast of €386m at an EBIT margin of 10%. We have slightly raised our 2022 forecast and see the company's 2023 & 2024 guidance as confirmation that 2G will continue to grow dynamically despite the recession. An updated DCF model still yields a €31 price target. We reiterate our Buy recommendation.
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