First Berlin Equity Research has published a research update on PSI SE (ISIN: DE000A0Z1JH9). Analyst Simon Scholes reiterated his BUY rating and maintained his EUR 28.00 price target.

Abstract
PSI’s Q2 report showed results starting to rebound from the impact of the mid-February cyberattack. Q2/24 sales were up 1.6% at €62.0m after a 13.7% y-o-y decline in Q1/24, while the EBIT loss narrowed to €-4.6m following €-14.8m in Q1/24. Management has maintained the guidance given in the annual report published in June for a €20m-€30m reduction in sales and a high single digit to low double-digit €m loss. Management say the cyberattack has not caused loss of clients, and so we expect 2025 numbers to benefit from sales held over from 2024. We further see the Energy Management segment’s EBIT margin returning to around the level recorded in 2023 clean of the Redispatch 2.0 cost overrun (6.5%) next year, and the EBIT margin at Production Management rebounding to the 12%-15% generated in recent years. PSI has committed to achieving a double-digit EBIT margin at Energy Management in the medium term (5 years). CEO Robert Klaffus (joined PSI on 1 November 2023) will reveal more detail on the medium term outlook for the company at a capital markets day in Frankfurt on 17 September. We have made only minor changes to our forecasts following the Q2/24 results, and maintain our Buy recommendation at an unchanged price target of €28.