First Berlin – OTI Greentech AG Research Update (11/09/2017)

First Berlin Equity Research has published a research update on OTI Greentech AG (ISIN: DE000A0HNE89). Analyst Dr Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 0.80 to EUR 0.69.

OTI Greentech reported preliminary H1 results and presented at the Small Cap Conference in Frankfurt. Sales increased 5% y/y to €5.3m and EBITDA improved from €-0.7m to €-0.5m. OTI lowered its 2017 guidance due to project delays at the subsidiary VTT Maritime. The company still expects a significant increase in sales y/y with a considerable improvement in EBITDA. The previous guidance was €16m in sales and a slightly positive EBITDA. We lower our estimates for 2017E and the following years. An updated DCF model yields a price target of €0.69 (previously: €0.80). We reiterate our Buy rating.