First Berlin – PNE AG Research Update (01/04/2019)

First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 3.60 price target.

PNE reported final 2018 figures and held a conference call. Final EBIT amounted to €7.8m and corresponded to the preliminary number. The net result was slightly negative at €-1.0m. For 2019, PNE is guiding towards EBITDA of €25-30m and EBIT of €15-20m, which is in line with our forecast. We believe that German project development, the expanded service business, and increased power generation will be the main sales and earnings drivers. We have revised our forecasts, which results in minor changes only. An updated DCF model still yields a €3.60 price target. At just 15% above tangible book value, the stock remains attractively valued. We reiterate our Buy recommendation.