First Berlin Equity Research has published a research update on ABO Energy KGaA (ISIN: DE0005760029). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 99.00 to EUR 97.00.

Abstract
ABO Energy has delivered its original 2024 guidance (€25m – €31m) with a net result of €25.6m. For the current year, the company is guiding towards a net result of between €29m and €39m, which would correspond to net result growth of between 13% and 52%. ABO Energy also plans strong net profit growth for the years 2026 – 2028 and sees net profit of at least €50m in 2028. We believe that both short-term double-digit earnings growth and the medium-term growth targets are well achievable. Our confidence is fuelled by the very high volumes for which ABO Energy has already secured legally guaranteed feed-in tariffs. Since the beginning of 2024, ABO has received tariffs for 240 MW onshore wind volume in Germany. Without turbine procurement this corresponds to sales potential of roughly €240m. In addition, 130 MW wind and PV projects from France received feed-in tariffs in 2024. The very high volume of projects approved in Germany in 2024 (335 MW wind, 120 MW solar) suggests further success in the next tendering rounds. ABO Energy has no business in the US and is therefore not directly affected by tariffs imposed by the Trump administration. In our opinion, the company would also weather a global recession very well in view of its already secured business and the very robust wind market in Germany. We would like to point out that wind and solar power enjoy a statutory feed-in priority in Germany, which leads to a high level of security when investing in corresponding assets. The recent decline in long-term interest rates should make project financing more favourable. We have slightly raised our forecasts for the current year. An updated DCF model yields a slightly lower price target of €97 (previously: €99) due to the higher net debt. With a consensus 2025E P/E ratio of 10x and 2026E of 8x, the company is very attractively valued. We confirm our Buy recommendation. Upside >160%.