First Berlin – Energiekontor AG Research Update (05/09/2018)

First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 23.70 price target.

Energiekontor reported H1 EBIT ahead of our forecast and only slightly below the previous year's level. Energiekontor's business model combines the volatile project business with the steady power production business. Thanks to improved wind conditions the latter contributed significantly to group EBIT in H1/18. Management reiterated guidance (lower EBT than in the previous year). Energiekontor recently received approval for a large (up to 48 MW) Scottish wind farm. This supports our view that business will pick up significantly next year. We stick to our full-year forecast and confirm our Buy rating and €23.70 price target.