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 118.00 price target.
ABO Wind strongly increased sales and EBIT in the first half of the year. Revenues rose by 33% y/y to €131m due to a significant increase in construction activity. EBIT climbed by 15% to €16.3m. However, net profit of €8.9m was 7% short of the previous year’s figure owing to significantly higher interest expenses. Typically, the second half of the year is seasonally much stronger than the first. Therefore, we continue to expect ABO Wind to achieve its guidance. Based on hardly changed forecasts, an updated DCF model yields an unchanged price target of €118. Following the share price decline in recent months, the stock is much more attractively valued with unchanged good short- and medium-term earnings prospects (P/E ratio 2024E now at 17). We confirm our Buy recommendation.