First Berlin – ABO Wind AG Research Update (13/06/2019)

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 21.50 to EUR 22.00.

ABO Wind reported record sales of €150m in 2018 and posted the third-best net result in its history at €12.7m. This is a remarkably good result, especially given the fact that the German market has literally collapsed. Thanks to strong foreign business, ABO Wind has been able to largely compensate for the market weakness in Germany. The strong growth of the project pipeline indicates that ABO Wind will continue to grow in the coming years. For 2019, however, the company expects a lower net profit of ca. €10m due to further weakening of the German market. However, the medium-term prospects are excellent thanks to internationalisation and the second pillar in solar. The company expects to regularly report annual net income above €20m by 2023 at the latest. An updated DCF model yields a new price target of €22.00 (previously: €21.50). The stock remains attractively valued at a 2020E P/E of 8x. We confirm our Buy recommendation.