First Berlin – ABO Wind AG Research Update (03/12/2018)

First Berlin Equity Research has published a research update on ABO Wind AG (ISIN: DE0005760029). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 20.00 to EUR 20.50.

Abstract
ABO Wind has announced that it expects the net result for 2018 to be ca. €12.5m. Although some uncertainty still attaches to this guidance, it is significantly (+11%) above our forecast. ABO Wind is thus nearing the end of another very successful year. As expected, 2018 is somewhat weaker than the extraordinarily strong years 2016 and 2017. The high net result again demonstrates the strong profit-generating capacity of the business model. For the coming years, management is aiming for annual average profit growth of at least 10%. At an EV/EBIT of 6x and a PE of 9x, the stock is very attractively valued. We have increased our 2018E forecast. We leave our forecasts for subsequent years unchanged pending an increase in visibility regarding project development. We confirm our Buy recommendation and increase the price target to €20.50 (previously: €20.00).

First Berlin – ABO Wind AG Research Update (03/12/2018)

First Berlin Equity Research has published a research update on ABO Wind AG (ISIN: DE0005760029). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 20.00 to EUR 20.50.

Abstract
ABO Wind has announced that it expects the net result for 2018 to be ca. €12.5m. Although some uncertainty still attaches to this guidance, it is significantly (+11%) above our forecast. ABO Wind is thus nearing the end of another very successful year. As expected, 2018 is somewhat weaker than the extraordinarily strong years 2016 and 2017. The high net result again demonstrates the strong profit-generating capacity of the business model. For the coming years, management is aiming for annual average profit growth of at least 10%. At an EV/EBIT of 6x and a PE of 9x, the stock is very attractively valued. We have increased our 2018E forecast. We leave our forecasts for subsequent years unchanged pending an increase in visibility regarding project development. We confirm our Buy recommendation and increase the price target to €20.50 (previously: €20.00).