First Berlin – TubeSolar AG Research Update (08/01/2021)

First Berlin Equity Research has published a research update on TubeSolar AG (ISIN: DE000A2PXQD4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 9.40 price target.

Abstract
Following the successful capital increase in December 2020, in which TubeSolar placed one million shares at EUR 6.00 per share with shareholders and institutional investors, the company entered a contract for a USD 2.5m stake in the US-American thin-film photovoltaic technology manufacturer Ascent Solar Technologies, Inc (ASTI). ASTI produces CIGS (Copper Indium Gallium Selenium) cells and modules. With this step, TubeSolar secures a future stake of approx. 15% in ASTI. In addition to the European supplier TubeSolar will thus have a second source of supply for the thin-film, which is integrated into the TubeSolar tubes. We think taking the stake in ASTI is an important step to avoid dependence on just one supplier for such a central input. In addition, the cooperation should make it easier for TubeSolar to gain a foothold in the US market for agrophotovoltaics, which we believe has great growth potential. We will adjust our model after the transaction has been completed and confirm our €9.40 price target with a Buy recommendation.