First Berlin Equity Research has published a research update on ABO Wind AG (ISIN: DE0005760029). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 118.00 to EUR 106.00.
At the annual general meeting, 87% voted in favour of the change in legal form and so ABO Wind AG will become ABO Energy KGaA. The change in legal form means that the two founders will retain their influence even if future capital increases dilute the current ca. 52% majority of the founding families. Operationally, ABO has recently impressed with positive news. In South Africa, the project rights for a construction-ready 100 MW solar park were sold. In Finland, ABO has reached further milestones and is now the country’s leading wind power developer. In Germany, ABO’s first hydrogen project is entering the next phase with the order for the electrolysis systems. An updated DCF model that takes into account the increased yield on risk-free assets results in a new price target of €106 (previously: €118). After the sharp share price decline of recent months, we see ABO as attractively valued and confirm our Buy recommendation.