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 33.00 price target.
2G Energy showed strong growth in the first half of the year, increasing sales by 19% and total output by 20%. For the full year, we assume sales growth of 14% and see the company well positioned at the end of the first half to achieve our forecasts and guidance (sales: €310m – €350m, EBIT margin: 6.5% – 8.5%), especially as the second half of the year is usually seasonally much stronger than the first half. We confirm our full-year forecasts. An updated DCF model yields an unchanged €33 price target. After the share price decline in recent months, we upgrade our rating from Add to Buy. The share price upside is 47%.