First Berlin Equity Research has published a research update on M1 Kliniken AG (ISIN: DE000A0STSQ8). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 14.00 to EUR 11.70.
Preliminary Q2 results showed continued strength in the injectables business with treatment numbers up 13% sequentially and 17% on an annualised basis. The treatment KPIs are encouraging considering that prior year comps were helped by post-lockdown catch up effects. Group revenue was close to our target, while earnings undershot FBe, due to higher than expected start-up costs traced to the international clinic expansion. The Haemato subsidiary reported a 22% Q/Q uptick in sales (€66m) and confirmed guidance (EBIT: €8m to €10m). We remain Buy-rated on M1 but have lowered our target price to €11.7 (old: €14) after reducing our forecasts for Haemato’s Specialty Pharma segment to account for building regulatory headwinds.
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