First Berlin – PNE WIND AG Research Update (09/11/2017)

First Berlin Equity Research has published a research update on PNE WIND AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 3.50 to EUR 3.70.

On 8 November, PNE Wind reported Q3 figures and held a conference call. EBIT amounted to €28.6m and was significantly above the previous year's figure and our forecast. The reasons for the excellent result were project rights sales in the US and Sweden, and a subsequent purchase price payment for the optimisation of the financing of the 142 MW wind farm portfolio sold to Allianz last year. Based on the strong 9M results, PNE increased its EBIT guidance to €17-23m (previously: €0-15m). We have increased our 2017E forecast and now expect EBIT close to the upper end of the guidance range. An updated DCF model yields a new price target of €3.70 (previously: €3.50). We confirm our Buy rating.