First Berlin – PNE AG Research Update (19/02/2021)

First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his ADD rating and increased the price target from EUR 7.20 to EUR 8.00.

PNE has published preliminary operating results for 2020 and expects EBITDA of between €24 and €28m, which is significantly above guidance of €15-20m and slightly ahead of our EBITDA forecast of €23.5m. EBIT will be in the middle-to-upper range of the guidance given (€5-10m) and thus above our previous forecast of €6.1m. Both the power generation and the project development business contributed to the strong Q4 results. In 2020, PNE completed, sold or started construction of wind projects with a total capacity of ca. 461 MW (prior year: 451 MW). In addition, the photovoltaic project pipeline was significantly expanded from 123 MWp at the end of 2019 to 548 MWp. We have reflected the improved guidance in our 2020 forecast. Furthermore, we believe that PNE's US business will thrive as the new US government is much more supportive of green power than the Trump administration. We have thus increased our medium-term forecasts. An updated sum-of-the-parts valuation yields a new price target of €8.00 (previously: €7.20). We reiterate our Add recommendation.