First Berlin Equity Research has published a research update on CR Energy AG (ISIN: DE000A2GS625). Analyst Ellis Acklin suspends his price target (old: €12) and places the stock Under Review (old: Buy).

Abstract
CR Energy AG (CRE) announced Friday afternoon that it expects to start insolvency proceedings in the next few days. According to the ad-hoc, the reason for the expected insolvency application is the reluctance of lenders to extend working capital loans as well as “the current market development.” The company also noted that the current projects of the subsidiaries (Terrabau and Solartec) should not be affected by this and that the Executive Board continues to hold talks with investors for the provision of equity and debt capital. CRE has not published its audited 2024 report. But the company reported a 98% equity ratio at the holding level in its H1/24 results, which is hard to square with the likely insolvency. We hope to gain further insight into the issues at the subsidiary level that appear to be the culprit. Until we gain greater clarity, we withdraw our estimates, suspend our price target (old: €12) and place CRE Under Review (old: Buy).