First Berlin Equity Research has published a research update on clearvise AG (ISIN: DE000A1EWXA4). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 3.70 price target.

Abstract
clearvise has sold its Finnish wind farms (29.7 MW) to Glennmont Partners and will generate proceeds of €8.3m above book value upon completion. clearvise benefitted from the very high prices for Finnish wind assets. The company justifies the strategic reallocation with the fact that the Finnish market no longer fits into its investment strategy and that its goal of managing >10% of the assets under management in the respective regional target market would be difficult to implement in Finland due to the very high prices for wind farms. The company will invest the proceeds of the sale in projects from strategic alliances in several European countries through their clearPARTNERS model. At this year’s AGM, all items on the agenda were passed with a large majority. Due to very high electricity prices and good wind and solar radiation conditions, 2022 was an exceptional year for clearvise with record revenue (€64m, +95% y/y) and EBITDA (€47.9m, +119% y/y). The EBITDA margin jumped by more than 8 percentage points to almost 75%. The net result was very impressive. After a net loss of €3.3m in the previous year, clearvise 2022 achieved a net profit of €11.6m. As electricity prices in 2023 were significantly lower on average y/y in the first six months and we also expect comparatively lower electricity prices for the rest of the year, we assume a significant decline in revenue after the sale of the Finnish wind farms (revenue 2022: €8.1m), especially as the expansion of the green power portfolio is likely to be small this year. We assume that a large part of the €8.3m will be booked as other operating income in 2023. Overall, clearvise’s target to successfully implement its clearSCALE 2025 growth strategy (portfolio capacity of 750 MW plus secured pipeline of 250 MW at the end of 2025) has become more ambitious than before. We confirm our Buy recommendation and the €3.70 price target.