First Berlin Equity Research has published a research update on M1 Kliniken AG (ISIN: DE000A0STSQ8). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 14.00 price target.
First quarter KPIs showed further evidence that M1’s Beauty operations continue to run unhampered despite the deteriorating macro-environment that now mixes red-hot inflation and rising interest rates with recessionary fears and lingering pandemic effects. Q1 Beauty segment sales topped €13.8m (Q1/21: €13.0m) spurred by 89k treatments (+9% Y/Y). EBIT for German clinics reached the targeted 15% to 20% margin corridor, while international centres showed a 43% annualised uptick in treatments to >10k. Group turnover fell some 21% on an annualised basis to €64m, due to the deemphasised high volume Specialty Pharma wholesale activities of the Haemato AG subsidiary. Full year audited 2021 figures confirmed preliminary results, and we remain Buy-rated on M1 with a €14 price target.