First Berlin Equity Research has published a research update on MPH Health Care AG (ISIN: DE000A289V03). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 37.00 price target.

Abstract
As expected, six month performance was impacted by the sharp decline in the value of the CR Energy participation. CRE started preliminary insolvency proceedings in June triggering an 87% collapse in its share price. Meanwhile, business for the other core investment, M1 Kliniken AG, continues to be good. The lifestyle and beauty specialist booked another strong performance for the January to June period with earnings growth topping 20% YoY, thanks to a strong uptick in Beauty segment margins. The AGM recently approved the €1.2 dividend to MPH shareholders. The CRE write-down was hard, but the outlook for M1 is excellent. M1’s recently streamlined clinic portfolio should boost margins even further going forward. We stick to our Buy rating and €37 target price (upside: 96%).