First Berlin Equity Research has published a research update on Enapter AG (ISIN: DE000A255G02). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and increased the price target from EUR 29.00 to EUR 30.00.
Enapter has entered into a strategic partnership with Johnson Matthey (JM) for joint research and development for advanced materials and components for AEM electrolysis. At the same time, Johnson Matthey is investing €20m in Enapter as part of the capital increase currently underway and will become a strategic investor with a future stake of approximately 4% in Enapter. We see Johnson Matthey’s investment as an accolade for Enapter, as JM is a global leader in sustainable technologies and in particular a proven expert in membranes and membrane electrode assemblies for hydrogen fuel cells and electrolysers. Together with the €30m tranche placed in April, Enapter has so far raised a total of €50m and thus has sufficient equity to move forward with the construction of its electrolyser plant. An updated DCF model yields a target price of €30 (previously: €29). We confirm our Buy recommendation.