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 Q4/23 order intake by 28% y/y to €47.5m, impressively continuing the turnaround that began in Q3 (+12% y/y). Combined with the high order backlog of €195m at the end of September 2023, this is a very solid basis for our 2024E revenue targets of €211m in equipment sales and €398m overall. Accordingly, 2G has confirmed 2024 guidance (total sales: up to €390m with an EBIT margin of 8.5% – 10.0%). 2G expects the good order development to continue and has raised 2025 sales guidance, first published in November 2023, to up to €450m (previously: €390m – €430m, FBe: €443m). We expect 2G to achieve double-digit growth this year and in 2025, while expanding its EBIT margin. Following the share price decline in recent months, we consider the share to be attractively valued (2024 P/E: 16x) and recommend buying the stock with an unchanged €34 price target.