MPH Health Care AG target price raised to €40 by First Berlin Equity Research

First Berlin Equity Research has issued a research update for MPH Health Care AG, maintaining a ‘buy’ recommendation and raising the 12-month target price from €37.00 to €40.00.

According to the M1 six-month report, the company’s beauty segment saw revenue increase by 11% year-on-year to €56.9 million, while EBIT rose by 24% to €18.6 million. The margin reached 32.7%, exceeding the M1 target of approximately 20%. When adjusted for a non-cash deconsolidation effect of €4.1 million from the sale of Haemato, group EBIT reached €19.7 million, representing a 9.5% year-on-year increase despite a smaller revenue base.

The Net Asset Value (NAV) of MPH increased by approximately 2% in the first half of the year to €248 million. The analyst noted that the M1 share has recently tested all-time highs, suggesting further potential for the NAV in the second half of the year.