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.

In the first quarter, 2G Energy generated sales and EBIT of €69.5m (+1% y/y) and €0.9m (Q1/23: €-0.2m) respectively, thus exceeding our expectations. Sales rose despite the very high revenue number in the prior year period. A significantly lower cost of materials ratio (64.5% vs. 69.0% in the prior year period) led to positive EBIT in a quarter that usually shows a weak operating result. We see the Q1 figures as confirmation of the 2G growth story and are sticking to our forecasts for the full year. We continue to assume 2024 sales growth of 9% y/y and a widening of the EBIT margin to 8.8%. An updated DCF model yields an unchanged €34 price target. We reiterate our Buy recommendation.