First Berlin – PNE WIND AG Research Update (12/04/2018)

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 maintained his EUR 3.80 price target.

PNE Wind reported final 2017 figures which exceeded our forecasts. Total aggregate output amounted to €187m and EBIT of €23.1m (FBe: €22.4m) reached the upper end of the guidance (€17-23m). The net result was €17.1m and topped our estimate by almost €5m due to lower tax expenses. 2017 highlights were the financial optimisation of the 142 MW portfolio, the sale of the remaining 20% to Allianz, the sale of the offshore wind farm project Atlantis I to Vattenfall, and the successful start of the build-up of the new 200 MW wind farm portfolio which includes the completion of a 43 MW German wind farm. For 2018, PNE is guiding towards EBITDA of €20-26m and EBIT of €10-16m. We have slightly adjusted our forecasts. The balance sheet remains strong (net cash position: €15m), and operating cash flow was solid at €23m. An updated DCF model still yields a €3.80 price target. We reiterate our Buy rating.