MPH Health Care AG Faces Market Setback Amid Insolvency News

First Berlin Equity Research issued a recent update on MPH Health Care AG, maintaining a "Buy" recommendation but reducing the target price from €108 to €37. The company's 2024 audited results showed a year-on-year increase, despite a weaker Q1. However, substantial concerns revolve around CR Energy, which constituted 24% of MPH's portfolio at the end of 2024.

CR Energy's announcement of impending insolvency proceedings has deeply impacted MPH, leading to a significant decline in CR Energy's market capitalization by approximately 85%. Consequently, this will affect MPH's net asset value in Q2. Ellis Acklin, the analyst, anticipates prolonged proceedings with limited information.

The research still sees potential for M1 Kliniken, part of MPH, suggesting a focus on M1 could reduce the current 65% discount on MPH's net asset value. A more common 50% discount has been applied, hence the revised target price of €37 per share.