First Berlin Equity Research has published a research update on ABO Energy KGaA (ISIN: DE0005760029). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 97.00 price target.

Abstract
ABO Energy is considering expanding its business model. Until now, the company has operated purely as a project developer for wind, solar, battery and green hydrogen projects. ABO Energy is now examining becoming a plant operator itself. Building and operating its own portfolio of wind, PV and storage parks would generate recurring cash flows and give ABO Energy the opportunity to develop into a broad-based provider of green power solutions. Given its many projects that are ready for construction in the short term, the company could build up a larger portfolio relatively quickly, provided that external partners can be found for financing. These potential partners have signalled their general willingness to do so, provided they obtain the usual shareholder rights. ABO Energy is therefore considering changing back into an AG. The founding families, who together own 52% of the shares, would be prepared to sell blocks of shares to finance the IPP portfolio. We will adjust our valuation model and forecasts if the company implements its plan and announces key data on the portfolio build-up. An updated DCF model yields an unchanged price target of €97 (upside: ~170%). We confirm our Buy recommendation.