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 10.50 price target.

First quarter KPIs showed evidence that M1’s Beauty operations are hitting their stride with profitability up to start the year. Performance was led by the German clinic network that contributed €18m in turnover with a 23% EBIT margin. The company opened a new M1 Beauty centre in Sofia, Bulgaria as part of its foray into Eastern Europe and another five clinics are in the hopper for this year. Meanwhile, Trade segment Q1 results overshot our targets for the period. Haemato reported good topline growth along with a solid uptick in EBIT margin to 5.2% (2022: 4.0%). Full year audited figures confirmed preliminary 2022 results. We have upped 2023 FBe to account for the better than expected Q1 performance and remain Buy-rated on M1 Kliniken with a €10.5 price target.