First Berlin – Energiekontor AG Research Update (19/12/2019)

First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and decreased the price target from EUR 22.50 to EUR 22.30.

Energiekontor sees a high likelihood that its 2019 EBT guidance of ca. €10m will not be reached due to a delay in the construction of a wind farm. In a worst case scenario, EBT could amount to a low single-digit million euro amount (FBe: ca. €2m). Although the optics looks bad, it is only a postponement of profits into 2020. We thus lower our 2019 EBT forecast from €10m to €2m, but increase the 2020 EBT estimate from €20m to €28m. We note that our 2020 forecast depends on wind farm project awards in the December 2019 and/or February 2020 German onshore wind tenders. An updated sum of the parts valuation yields a slightly lower price target of €22.30 (previously: €22.50). We reiterate our Add rating.