First Berlin Equity Research has published a research update on The Platform Group SE & Co. KGaA (ISIN: DE000A40ZW88). Analyst Alexander Rihane reiterated his BUY rating and decreased the price target from EUR 19.00 to EUR 15.00.

Abstract
The Platform Group reported mixed H1 results. H1 revenue grew 22% y/y to €421m, but this owed primarily to a strong Q1 (+51% y/y to €243m). Second quarter sales decreased 2% y/y to €178m, marking the first q/q sales decline since Q1/24. While the top line came in 28% below our forecast (FBe: €246m), AEBITDA beat our estimates, rising 9% y/y to €19m at a 10.7% AEBITDA margin (+110bp y/y). The AEP deal, which was expected to be closed in May, is still not completed. TPG has since secured a term sheet for up to €80m in financing, which is earmarked for acquisitions, but is waiting for final closing conditions to be met. The company confirmed its full-year guidance of €1bn in sales and €70m – €80m AEBITDA. We think the guidance is plausible and have thus left our forecasts unchanged. We have increased our WACC estimate due to continued delays in the AEP deal and a higher risk-free rate, among other things. An updated DCF model, which takes into account our higher WACC estimate of 12.0% (previously: 11.1%) and the increased share count (+11%) since our last note, yields a new price target of €15 (previously: €19). While our DCF model points to a fair value of €15 per share, we believe that ongoing auditor- and AEP-related uncertainty will continue to weigh on the stock. A resolution of these matters should help close the wide valuation gap. We maintain our Buy rating (upside: >1000%).