First Berlin – PNE AG Research Update (10/08/2018)

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

PNE reported Q2 figures which were above the previous year's numbers and our forecast. EBIT amounted to €4.2m (Q2/17: €-5.3m, FBe: €2.3m) and the net result was €2.7m vs. €-4.5m in Q2/17. In H1, PNE was awarded projects with a total capacity of 49 MW in German onshore tenders. On 30 June, onshore wind projects with a total capacity of 66 MW were under construction. Furthermore, PNE received a €4m milestone payment for its offshore wind project Gode Wind 3. The company reiterated its 2018 guidance (EBIT €10-16m, EBITDA €20-26m). Given another expected offshore milestone payment and expected proceeds from the Chilocco project rights sale (200 MW) in the US in H2, we forecast PNE will reach the upper end of its EBIT guidance. The stock is trading below book value and thus remains attractively valued. Based on unchanged estimates we confirm our Buy rating and the €3.80 price target.