First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal upgraded the stock to BUY and increased the price target from EUR 109.00 to EUR 115.00.

Abstract
Energiekontor (EKT) has received approval for three German solar parks with a total capacity of almost 130 MW. Recently, EKT sold a German 8 MW wind farm from its own plant portfolio to Stadtwerke Heidenheim. As Energiekontor usually does not sell own plant portfolio assets, we believe that the selling price was very attractive. Two further German wind farms (4 MW & 11 MW) have been sold in recent months, and in September, the company was uplisted to the SDAX. We believe that renewable energy companies such as Energiekontor will not be hit by the recession as renewable power assets are benefitting from very high power prices and remain in high demand. Higher power prices should more than compensate for higher material costs and interest rates. Even the European power price cap of ca. 180 €/MWh (effective from 1 December) will be ca. three times as high as recent German feed-in tariffs for wind and solar. Energiekontor has a very robust business model with secure and high cash flows from own wind & PV plant operation and a 9 GW international wind and solar project pipeline. We stick to our short-term forecasts, but have increased our long-term forecasts for the power production segment. An updated sum-of-the-parts valuation yields a new price target of €115 (previously: €109). We upgrade our rating from Add to Buy as the upside potential is now >25%.