First Berlin – aventron AG Research Update (08/08/2018)

First Berlin Equity Research has published a research update on aventron AG (ISIN: CH0023777235). Analyst Dr Karsten von Blumenthal reiterated his BUY rating and maintained his CHF 13.00 price target.

aventron has increased its equity by CHF 94.3m (9.6m shares at an issuing price of CHF 9.80). For ca. 6m shares aventron has received contributions in kind (wind and solar power assets) from its major shareholder EBM. From the placement of a further 3.6m shares aventron has received proceeds of CHF 35.4m. With the capital increase the company will finance future growth. As the 500 MW capacity target aimed for by 2020 looks set to be reached in 2019 management plans the next medium-term expansion target: By 2030 aventron wants to build-up a green power portfolio with a total capacity of 1,000 MW and a power production of 2,200 GWh. Given management's excellent track record regarding the successful expansion of the portfolio in recent years including large capital increases our confidence in the expansion strategy is high. We have accounted for the capital increase and the expansion to 1,000 MW in our model and increased our medium-term estimates accordingly. The share remains attractively valued und offers upside potential of 37% on our unchanged price target of CHF 13.00. We maintain our Buy recommendation.