Beaconsmind AG Maintains Buy Recommendation Despite Lowered Price Target

First Berlin Equity Research GmbH has updated its analysis on Beaconsmind AG (ISIN: CH0451123589), maintaining its Buy recommendation but adjusting the price target from EUR 22.00 to EUR 14.00. Analyst Christian Orquera highlights a transformative year for the company in 2023, involving the acquisition of five German companies focusing on Wi-Fi hotspots and IT infrastructure. This reorganization created two distinct business segments: IT Infrastructure and Software as a Service (SaaS).

The report acknowledges the appeal of the Wi-Fi hotspot business, buoyed by the launch of new products like the white label app and the smart lighting pole. Additionally, significant contracts in retail, nursing care, and facility management demonstrate strong business momentum. However, the analysis cautions that this potential may not offset declines in beacon business revenues in the short term. As reflected by weaker than expected financial results in the second half of 2022 and the first half of 2023, as well as updated revenue and EBITDA forecasts for the fiscal years 2023 and 2024, revenue and profit forecasts have been downgraded.

Despite these adjustments, the report sees over 180% upside potential from the current level to the revised price target of EUR 14. The sustained Buy recommendation reflects confidence in the company's strategic direction and growth potential, notwithstanding near-term uncertainties.