First Berlin – ABO Invest AG Research Update (08/10/2018)

First Berlin Equity Research has published a research update on ABO Invest AG (ISIN: DE000A1EWXA4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 2.20 to EUR 2.10.

ABO Invest released H1 numbers that met our expectations. Sales rose significantly (+27%) to €16.8m and the result before taxes was slightly positive and increased by €1.5m compared to the previous year's figure. As expected, wind conditions in the first half-year were weak and resulted in power production falling short of the forecast by just under 9%. Since power production was below expectations in Q3, we have lowered our forecast for the full year. If wind conditions in the second half of the year are similarly weak as in the first, the company will expect a net loss of ca. €1m. An updated DCF model yields a new price target of €2.10 (previously: €2.20). We confirm our Buy recommendation.