First Berlin – Energiekontor AG Research Update (14/05/2021)

First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal upgraded the stock to BUY and increased the price target from EUR 70.00 to EUR 71.00.

Abstract
On 14 May, Energiekontor published its interim status report for Q1/21, which gives a qualitative update on business development. In Q1, EKT sold a 50 MW Scottish project, closed a PPA for a 52 MW solar park, and was successful in German onshore wind and solar tenders. Construction activity is at a very high level with 12 wind farms (237 MW) and one solar park (9 MW) under construction. Tougher climate protection regulation in Germany, the EU, and the US is expected to have a positive impact on Energiekontor's medium-term business prospects. We believe that the company is on track for a very successful 2021. Energiekontor confirmed both 2021 and medium-term guidance. An updated sum-of-the-parts valuation yields a slightly higher price target of €71 (previously: €70). Given upside of >25% to our new price target, we upgrade the stock from Add to Buy.