First Berlin – ABO Wind AG Research Update (22/06/2020)

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 27.00 to EUR 30.00.

Abstract
ABO Wind has published its annual report. The net profit was €11.4m and matched the preliminary number. The company exceeded guidance and our forecast of €10m. EBIT was higher than ABO Wind has published its annual report. The net profit was €11.4m and matched the preliminary number. The company exceeded guidance and our forecast of €10m. EBIT was higher than expected despite lower sales due to a higher-margin product mix. ABO Wind sold more project rights and fewer turnkey projects. Despite the pandemic and recession, ABO Wind's business continued to develop well into June and we see no signs so far that this will change fundamentally over the next few months. We cannot rule out individual project postponements, but many project successes in the first half of the year and the well-filled international project pipeline indicate growth even during the crisis. In the current fiscal year, ABO Wind is guiding towards a net profit which is at least as high as the prior year's €11.4m. Our 2020 forecasts are now somewhat more conservative due to the lower visibility. An updated DCF model results in a new price target of €30 (previously: €27). We confirm our Buy recommendation.