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 11.70 to EUR 11.10.
Third quarter treatment numbers (97k) were in line with expectations and have M1 tracking well towards our 2022 target of 390k. The Beauty segment generated 9M/22 EBIT of €3.4m (9M/21: €2.9m), but earnings were somewhat lower than expected due to higher costs for the international clinic expansion. The beauty specialist opened a new clinic in Budapest, Hungary in September and unveiled plans on the earnings call for expansion into Bucharest, Romania. Meanwhile, the Trade segment (Haemato AG) contributed €3.1m in EBIT. We have dialled back our 2022 EBIT target to account for lower Beauty earnings and now assume €10m in CapEx for the botox clinical trials starting in 2023. Our rating remains Buy with a €11.1 target price (old: €11.7).