First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal upgraded the stock to BUY but decreased the price target from EUR 12.00 to EUR 10.00.

Abstract
On 10 August, PNE informed the market that price expectations of potential acquirers of up to 100% of PNE’s shares were below the then current market price level of the PNE share (10 August: XETRA: €9.89). This caused a sell-off and the share lost ca. 20% in one day. Declining market premiums in German onshore wind auctions, a likely deterioration of the regulatory environment (new German EEG and grid package), and rising financing costs are squeezing margins. We believe that PNE’s three-pillar business model (project development, own power production, and service is broad enough to weather the challenging market conditions. PNE has a strong international project pipeline, its large own plant portfolio generates high and stable cash flows, and its service business offers stability. PNE’s H1 figures were roughly in line with our forecasts. PNE increased H1 AEBITDA y/y from €4.7m to €27.4m and reiterated 2026 guidance. We have taken into account the likely deterioration of the German regulatory environment in our revised forecast for the coming years. An updated sum-of-the-parts valuation yields a new price target of €10 (previously: €12). Following the recent share price slump, we upgrade the stock from Add to Buy (upside: 38%).