First Berlin – OpenLimit Holding AG Research Update (17/12/2018)

First Berlin Equity Research has published a research update on OpenLimit Holding AG (ISIN: CH0022237009). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 0.50 to EUR 0.65.

Abstract
OpenLimit and Power Plus Communications (PPC) have received the certification for their smart meter gateway (SMGW). This is the first SMGW certification from the German Federal Office for Information Security (BSI) and underlines OpenLimit's / PPC's leading position in the future SMGW market. OpenLimit / PPC can now start SMGW production and distribution. The certification supports our growth forecast for 2019E (sales: +24% y/y), and lowers OpenLimit's operating, financial, and liquidity risk. We therefore reduce our WACC from 16.0% to 14.3%. Based on unchanged forecasts, an updated DCF model yields a new price target of €0.65 (previously: €0.50). We reiterate our Buy rating.

First Berlin – OpenLimit Holding AG Research Update (17/12/2018)

First Berlin Equity Research has published a research update on OpenLimit Holding AG (ISIN: CH0022237009). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 0.50 to EUR 0.65.

Abstract
OpenLimit and Power Plus Communications (PPC) have received the certification for their smart meter gateway (SMGW). This is the first SMGW certification from the German Federal Office for Information Security (BSI) and underlines OpenLimit's / PPC's leading position in the future SMGW market. OpenLimit / PPC can now start SMGW production and distribution. The certification supports our growth forecast for 2019E (sales: +24% y/y), and lowers OpenLimit's operating, financial, and liquidity risk. We therefore reduce our WACC from 16.0% to 14.3%. Based on unchanged forecasts, an updated DCF model yields a new price target of €0.65 (previously: €0.50). We reiterate our Buy rating.