First Berlin Equity Research has published a research update on Clean Logistics SE (ISIN: DE000A1YDAZ7). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and decreased the price target from EUR 19.00 to EUR 4.10.

Abstract
On 21 December 2022, Clean Logistics (CL) announced that the company is in a difficult financial situation that requires short-term action to ensure the company’s viability. CL has therefore resolved to carry out a capital increase with subscription rights for shareholders by issuing up to 2.7 million new shares. The subscription price is €1.80 per share. The proceeds would thus be up to €4.9m. The company’s major shareholders have declared their willingness to participate. In addition, the company’s creditors have signalled that they are considering a debt-to-equity swap. At the end of December, Dirk Lehmann, previously Chairman of the Board of Directors and one of the two founders of Clean Logistics, resigned from the Board. Dirk Lehmann was the owner of E-Cap Mobility, in which CL acquired 75%. CFO Jürgen Akkermann had already resigned as a member of the Board of Directors and Managing Director at the beginning of December. Mr. Akkermann had only been appointed in September 2022. As part of a strategic realignment, CL has resold the Dutch truck manufacturer GINAF, which it acquired in July. This measure will reduce loan commitments and generate cash in the mid single-digit million euro range. In addition, CL now intends to implement the planned series production of zero-emission trucks via a strategic partner by increasing the use of contract manufacturing. We have significantly lowered our sales estimates for 2022 and subsequent years and increased our WACC estimate in view of the increased business risk. An updated DCF model yields a new price target of €4.1 (previously: €19.0). We see the planned capital increase at an issue price of €1.80 per share as an attractive opportunity for investors prepared to assume a certain degree of risk. Our recommendation remains Add.