First Berlin – PNE AG Research Update (09/08/2019)

First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 3.60 to EUR 3.80.

PNE reported strong Q2 figures and held a conference call. The sale of two large wind farm projects in Poland and Sweden with a planned total capacity of 245 MW was the main earnings driver and shows the importance of the international business, especially in times such as now, in which the German market is suffering from low installation figures due to a lack of approvals. Q2 EBIT amounted to €8.6m and was ahead of our forecasts and more than twice as high as the previous year's figure. However, higher interest and similar expenses resulted in lower net income of €1.7m. Given the better than expected Q2 EBIT, we increase our 2019E EBIT forecast. An updated DCF model yields a new price target of €3.80 (previously: €3.60). We reiterate our Buy rating.