First Berlin Reiterates Buy Rating for ParTec AG; New Strategic Shift Announced

First Berlin Equity Research has reaffirmed its BUY rating for ParTec AG, maintaining the target price at €170. Analyst Simon Scholes highlights that ParTec's first half results surpassed estimates, with sales reaching €10.7 million, due to early revenue realization from Mare Nostrum V and Jupiter. A positive EBIT of €3.6 million was reported, bolstered by a stronger gross margin. ParTec's net income amounted to €5.7 million, aided by a tax refund.

ParTec anticipates a strong second half for 2024, contributing to 86% of its annual sales. A strategic shift was announced at the AGM in August, focusing on the building and operating large AI machines. ParTec has signed an MoU with Helmholtz-Zentrum Dresden-Rossendorf for a large AI supercomputer, ELBJUWEL, with a contract expected by year-end. The long-term outlook sees increased profit margins from 2026.