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 18.00 price target.

Preliminary 2023 results again featured a strong showing by the Beauty segment. Twelve month Beauty performance was led by the German clinic network that contributed €56m in turnover with a 28% EBIT margin, including a 24% margin in the October-to-December period. The group of international clinics narrowly missed a first-time positive EBIT result on an annualised basis, reporting €-0.2m (2022: €-2.4m). M1 opened four new beauty centres in three countries in 2023 and a further two YTD bringing the tally to 60. More openings are in the hopper for this year. We recently upped our forecasts to better reflect Beauty segment performance and see no reason to rein in our optimism. We are Buy-rated on M1 with an unchanged €18 TP.