First Berlin – TubeSolar AG Research Update (12/07/2021)

First Berlin Equity Research has published a research update on TubeSolar AG (ISIN: DE000A2PXQD4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 9.40 to EUR 7.70.

TubeSolar has presented its 2020 annual report. As expected, the company, which is developing an innovative agricultural PV technology, did not generate any sales. EBIT amounted to €-2.3m and the net result was €-1.4m. The results were above our estimates, as delays in the module certification process have pushed back the construction and commissioning of the planned 20 MW production line. This has in turn resulted in slower workforce expansion and lower OPEX. We now expect the certification process to be completed by the end of 2021 and the commissioning of the production line in H2/22. We have adjusted our forecasts to reflect the delay. An updated DCF model yields a new price target of €7.70 (previously: €9.40). We confirm our Buy recommendation.