First Berlin – PSI AG Research Update (06/11/2017)

First Berlin Equity Research has published a research update on PSI AG (ISIN: DE000A0Z1JH9). Analyst Simon Scholes reiterated his ADD rating and increased the price target from EUR 17.00 to EUR 20.00.

Abstract
PSI continues to benefit from a cyclical upturn in investment at its Production Management business and a structural increase in demand at Energy Management. Reorganisations and spin-offs at Energy Management's German utility customers are prompting increased readiness to invest in digitalised solutions. The third quarter report demonstrates once again the increasing business possibilities such as sector coupling and grid management as a service which the ongoing energy, mobility and heating transitions are creating. We have revised up our earnings forecasts and raised our price target from €17.00 to €20.00 to take account of the increasing momentum behind the adoption of the PSI's solutions in these areas. We maintain our Add recommendation.