First Berlin Equity Research has published a research update on M1 Kliniken AG (ISIN: DE000A0STSQ8). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 18.00 to EUR 28.00.

Audited 2023 reporting was close to prelims confirming the good profitable growth notched last year. But the real headline was a new mid-term outlook calling for an eye-popping 150 to 200 M1 Beauty centres by YE29. This compares to 58 facilities exiting 2023 and towers above consensus. We have overhauled FBe to align with the mid-point of clinic network guide. M1 brass sees Beauty segment sales between €200m and €300m in 2029, while holding the EBIT margin north of 20%. The new targets are ambitious in today’s volatile world, but not impossible. Meanwhile, today’s Q1 KPI’s build upon the positive business momentum witnessed last year with group sales up 10% Y/Y to €85m spearheaded by an 18% rise in Beauty segment turnover. We now target 2029 Beauty sales of €220m (old: €139m), which ups our TP to €28 (old: €18). M1 shares caught a sizeable bid on the newsflow, and the rally looks justified. We remain Buy-rated on M1.