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 3.80 price target.
clearvise has signed an MoU with Pacifico Renewables Yield AG to acquire the 166 MW Pacifico wind and solar portfolio. Upon completion of the transaction, clearvise's portfolio would grow by 55% in one fell swoop from 303 MW to 469 MW, making clearvise Germany's second largest listed green power Independent Power Producer (IPP). Pacifico would become a strategic shareholder of clearvise with a long-term stake of approximately 40%. We believe the transaction would be beneficial for clearvise. It would significantly strengthen and diversify the asset and equity base, increase financial strength, and lead to economies of scale in asset management. Upon successful completion of the transaction, we will integrate the Pacifico portfolio into our forecasts. clearvise recently entered into Power Purchase Agreements (PPAs) for 34 MW, hedging high power prices until the end of the year. The company benefits from selling the electricity from German green power plants at prices that are in some cases two to four times higher than the feed-in tariffs. Since the beginning of the year market values for wind and solar power in Germany have been very high. We expect them to remain high until the end of the year, as there is no end in sight to the Russian invasion of Ukraine and the curbed gas supplies from Russia to Europe. We therefore raise our revenue forecast for 2022E from €44.6m to €49.9m. An updated DCF model still yields a €3.80 price target. We confirm our Buy recommendation.
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