First Berlin – PNE AG Research Update (09/11/2018)

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

PNE reported Q3 figures below the previous year's figures and our forecasts. EBIT was slightly negative at €-0.3m. On a nine month basis, EBIT amounted to €3.7m. In Q3, PNE received another offshore milestone payment from Oersted for the Borkum Riffgrund II project amounting to ca. €4m. Onshore construction activity increased q/q from 66 MW to 93 MW. Management reiterated guidance (EBITDA: €20-26m, EBIT €10-16m). We believe that PNE will reach its guidance and expect a strong Q4, but lower our 2018 & 2019 forecasts following the weaker than expected Q3 results and a lack of projects awarded in Germany. We maintain our Buy rating based on a slightly lower price target of €3.60 (previously: €3.80).