First Berlin – clearvise AG Research Update (30/11/2021)

First Berlin Equity Research has published a research update on clearvise AG (ISIN: DE000A1EWXA4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 3.40 to EUR 3.30.

clearvise has adjusted its forecast for 2021 downwards due to very weak wind conditions in November and now expects EBIT of €2.0 - €2.3m (previously: €4.0 - €7.8m). As years with weak and strong wind conditions should balance each other out over the long term, we are sanguine about the profit warning. clearvise has made very good progress this year in implementing its growth strategy and has increased the capacity of its green power portfolio by ca. 70% from 150 MW to 255 MW. Of this, 199 MW are already in operation. The entry into photovoltaics (92 MW) will mitigate yield fluctuations in the future. The company has achieved exclusivity for a further 97 MW of construction-ready solar projects and has set itself the goal of reaching 1,000 MW of portfolio capacity by 2025 (750 MW in operation, 250 MW in the pipeline). Following the significant acceleration of wind and solar power expansion announced in the coalition agreement of the future German government, we see improved growth opportunities for clearvise in its home market. Furthermore, high electricity prices on the German power exchange offer extra earnings potential. We have lowered our estimate for 2021, but maintain our view that clearvise is an attractive growth stock on a solid financial footing. An updated DCF model yields a slightly lower price target of €3.30 (previously: €3.40). We confirm our Buy recommendation.