First Berlin Equity Research has published a research update on The Platform Group AG (ISIN: DE000A2QEFA1). Analyst Alexander Rihane reiterated his BUY rating and maintained his EUR 20.00 price target.

Abstract
The Platform Group presented headline Q3 results and held a conference call. Sales were up 35% y/y at €189m (FBe: €188m), with organic growth accounting for ca. two thirds of the increase. Adjusted EBITDA rose some 78% y/y to €12.5m (FBe: €11.5m), with the AEBITDA margin widening by 160bp to 6.6%. This margin expansion is owed to better marketing and distribution expense ratios as part of TPG’s cost cutting and streamlining measures. All four segments saw revenues grow, with Consumer Goods, TPG’s largest segment, experiencing the highest revenue and AEBITDA increases (+60% and +104% y/y respectively). We see TPG well on track to meet year-end guidance and have therefore not altered our estimates. An updated DCF model yields an unchanged price target of €20 (upside: 153%). We maintain our Buy recommendation.