First Berlin – ABO Wind AG Research Update (09/10/2019)

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 22.00 to EUR 22.50.

ABO Wind presented stable half-year figures on an annual basis. The company exceeded our estimates, as it, against our expectation, compensated for the weak German market with higher sales contributions from abroad. An H1 net profit of €5.2m means that ABO Wind has already reached 52% of full-year guidance, a net profit of approximately €10m. We are therefore confident that the company will achieve its guidance despite the persistently weak German market. More important than short-term financials are the long-term perspectives of the wind and solar power plants' developer. These continued to improve in the first half of the year as ABO Wind expanded its development pipeline by 3.5 GW to approx. 10 GW. The company continues to grow into the role of a global project developer and is currently active in 16 markets on four continents. We confirm our 2019E forecast and our growth assumptions for subsequent years. ABO Wind remains attractively valued with a 2020E P/E ratio of 8. An updated DCF model results in a slightly higher price target of €22.50 (previously: €22.00). We confirm our Buy recommendation.