Close menu

January 23rd, 2020 | 05:50 CET

Berenberg says "buy": Next recommendation for MPH investment M1 Kliniken AG

  • Clinic
Photo credits:

The analysts at Berenberg have begun coverage of M1 Klinken AG and have recommended the share as a buy. With more than 70 doctors and over 200,000 treatments annually, M1 is the market leader for beauty medicine in Germany. Thanks to its strategy "highest quality at the best price", the company has been able to achieve annual growth rates of around 30% since 2014. The investment of MPH Health Care, which is also listed on the stock exchange, should also grow significantly in the future. The driving forces are the increasing market penetration in Germany and the international rollout. The analysts expect EBIT to grow by 30% annually until 2022 and recommend buying the M1 share with a price target of EUR 18. Analysts from Commerzbank, Kempler or GBC also recommend buying.

time to read: 1 minutes | Author: Mario Hose
ISIN: DE000A0STSQ8 , DE000A0L1H32

Table of contents:

    Market leader in the growing German market for beauty treatments

    With more than 200,000 treatments per year, M1 is the market leader for beauty treatments in Germany and has an estimated market share of 20 to 25% in non-surgical injectable treatments. Thanks to a combination of high quality treatments and cost leadership based on economies of scale in treatments and purchasing, M1 clinics have started to build a strong brand across Germany and launch their own M1 Select skincare range.

    Prospects for economies of scale with limited risk

    For further market penetration, M1 is currently expanding in German top 2 cities with 300,000 inhabitants. Thanks to its capital-saving business model and variable salary structures for doctors, the economic conditions are very favourable. This is offset by the economies of scale described above. For example, Berenberg assumes that M1 Kliniken will generate an attractive ROCE of more than 20% by 2021.

    Growth through international expansion

    M1 Kliniken plans to double the number of treatment units from 24 at the end of 2018 to 50 by the end of 2020, 20 of which will be outside Germany. The target markets are nearby Austria, Switzerland, the Netherlands as well as Great Britain and Australia. The goal of M1: An international market leader. For 2018-22, Berenberg forecasts average revenue growth of 17% p.a. and average EBIT growth of 30% p.a., driven mainly by the core segment Beauty.

    Analysts with price targets up to EUR 21

    With its buy recommendation, Berenberg joins the ranks of the positive analysts' comments. All the accompanying institutions - including Commerzbank and Bankhaus Metzler - are convinced that M1 Kliniken will also grow at double-digit rates in the coming years and recommend the share as a buy. The price targets range up to EUR 21 per share.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author

    Related comments:

    Commented by Mario Hose on January 30th, 2020 | 07:34 CET

    After M1 now CR Capital with price jump: When does MPH share react?

    • Clinic

    The holding company MPH Health Care AG can be pleased about the positive development of its investments. After the share price of M1 Klinken AG had increased significantly in recent weeks, driven among other things by positive analyst comments and the successful international expansion, the share of CR Capital Real Estate AG yesterday rose by 12.4% to EUR 36.20. The MPH share should also benefit from this development. The value of the M1 participation alone meanwhile exceeds the total market capitalisation of MPH of EUR 178 million. Thus, investors will receive the 50-percent shareholdings in CR Capital and Haemato AG with a combined market value of EUR 100 million free of charge. When does the MPH share react?