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 maintained his EUR 106.00 price target.
ABO Wind has confirmed 2023 guidance (net profit of €22m to €26m). For 2024, the company expects a net profit of €25m to €31m. Taking the respective guidance midpoints as a reference (€24m and €28m), this would result in net profit growth of 17% y/y. Management also expects net profit to rise in subsequent years. Although the wind industry is currently struggling with project delays, higher interest rates and delivery difficulties, ABO Wind also expects good results in 2024. The reason for this is a high quality internationally diversified project pipeline that has grown steadily in recent years. More and more projects are reaching construction maturity, giving ABO Wind the opportunity to either sell the project rights immediately or build the projects itself. We see our growth forecasts as confirmed and are sticking to our €106 price target. After the share price decline in recent months, ABO Wind is attractively valued at a 2024 P/E ratio of 15. We reiterate our Buy recommendation.