First Berlin Equity Research has published a research update on CR Energy AG (ISIN: DE000A2GS625). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 12.00 price target.

Abstract
Six month reporting focused on updates on operations at the core holdings, while CRE’s financials took a backseat with earnings to be backloaded in H2/24. NAV was thus largely unchanged at €394m for the January-to-June period. Terrabau and Solartec racked up combined six month net earnings of €9.5m, but CRE brass expect this figure to climb in the back half of 2024 when the entire distribution is booked. Business momentum remained good in H1 despite another headwind year for the property sector, and Terrabau now wants to expand into social housing. The general contractor has a proven blueprint that should easily translate on this new frontier, which offers excellent growth prospects. For the time being, we expect CRE to refrain from non-cash portfolio revaluations and focus on cash distributions from its holdings. We have adjusted our projections accordingly and remain Buy-rated on CRE with an unchanged €12 TP.