First Berlin – clearvise AG Research Update (06/07/2021)

First Berlin Equity Research has published a research update on clearvise AG (ISIN: DE000A1EWXA4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 3.40 price target.

Abstract
clearvise has presented its annual report for 2020 and confirmed its preliminary figures. Good wind conditions resulted in 10% y/y revenue growth to €36.4m. EBIT increased by 35% y/y to €9.1m. For the first time, clearvise achieved a net profit, which amounted to €2.4m. In the case of an average wind year, clearvise expects 2021 electricity production of around 400 GWh, revenues of €37.1m and EBITDA of €26.2m for its existing portfolio. Following weak first quarter wind conditions and the costs of implementing its growth strategy, clearvise is guiding towards 2021 net income of €-1.2m. We lower our forecast for 2021 and adjust our estimates for subsequent years to reflect the higher growth rate as clearvise has recently acquired a French wind farm (12 MW). Previously, a German solar portfolio (>80 MWp, partly still under development and construction) was purchased. By the end of 2022, this should increase the green power portfolio from 151 MW (end of 2020) to at least 243 MW. We thus see the company on track to successfully implement the growth strategy it adopted last year. An updated DCF model still yields a €3.40 price target. We confirm our Buy recommendation.