First Berlin Maintains Buy Rating for ParTec AG Amid Adjusted Forecasts

First Berlin Equity Research has released an update on ParTec AG (ISIN: DE000A3E5A34), reiterating their Buy recommendation while decreasing the target price from €220.00 to €170.00. The research, conducted by analyst Simon Scholes, follows the publication of ParTec AG's 2023 annual report.

ParTec AG reported a significant increase in sales for 2023, up 165% to €95.7 million, close to the forecast of €96.8 million. However, 2023 EBIT was €14.4 million, slightly below the anticipated €15.6 million due to a lower gross margin and higher recruitment and travel costs.

Revenue guidance for 2024 is set at €200 million, below the initial estimate of €335.2 million and the consensus of over €300 million. The shortfall is attributed to expected delays in the vendor segment, a strategic focus on fewer, larger AI projects, lower software and support revenues, and potential impacts from a court case against Microsoft.

Despite adjusting the forecasts, First Berlin maintains a positive outlook on ParTec AG, projecting a 59.7% CAGR in sales from 2024 to 2027 due to rising project volumes and growing AI machine revenues.