First Berlin Equity Research Reiterates Buy Rating for Verve Group SE

First Berlin Equity Research GmbH has released an update on Verve Group SE. Analyst Ellis Acklin reaffirmed the buy recommendation and raised the target price from €4.90 to €5.40.

Verve Group SE's preliminary Q2 KPIs surpassed expectations, with sales increasing by 27% and the number of large software clients growing by 33% year-over-year to 851. Earnings, represented by AEBITDA, rose by 37%. This strong performance led Verve to revise its 2024 guidance, projecting sales between €400 to €420 million and AEBITDA between €125 to €135 million.

Earlier this year, Verve acquired US-based Jun Group, initially met with skepticism by investors. However, about a week later, Verve’s stock price surged by 60%, indicating growing investor confidence. Ellis Acklin believes this positive response reinforces Verve's market position, justifying the increased target price.