First Berlin Equity Research has published a research update on beaconsmind AG (ISIN: CH0451123589). Analyst Christian Orquera reiterated his BUY rating and decreased the price target from EUR 22.00 to EUR 14.00.

Abstract
In 2023, beaconsmind underwent a radical transformation. The company completed four acquisitions of five German companies, which are chiefly active in the areas of Wi-Fi hotspots and IT infrastructure. To complete the transformation, the company divided its holding portfolio into two business areas, the newly formed IT Infrastructure segment and the Software as a Service (SaaS) segment. We believe the Wi-Fi hotspot business is highly attractive. The company recently announced the launch of new products such as the white label app and the smart lighting pole. In addition, beaconsmind signed several new major Wi-Fi/IT infrastructure contracts in the retail (Müller), nursing care (Vitanas) and facility management (Reos/Die Zimmerei) fields which is excellent news. However, we believe the attractive growth potential from Wi-Fi revenues will not compensate for the lower beacon business revenues in the near term. This is reflected in the weaker than expected H2/22 and H1/23 results and management’s updated revenue and EBITDA guidance for FY/23 and FY/24. We have lowered our revenue and profit forecasts for 2023 and subsequent years. Our DCF model now yields a price target of €14 (previously €22), which represents an upside potential of >180% from the current level. We maintain our Buy recommendation.