First Berlin Equity Research has published a research update on Enapter AG (ISIN: DE000A255G02). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 17.00 to EUR 13.00.

Enapter has concluded an exclusive partnership agreement with Solar Invest International SE (SII) and granted the company a distribution licence for the USA. Enapter will receive a total of €25m for the licence, of which approximately €10m – €11m were recognised in 2023. As a result, Enapter’s 2023 EBITDA should be close to break-even. The previous guidance was €-10m to €-11m. We have adjusted our estimates for 2023 accordingly. We welcome the deal as it provides Enapter with funds to cover its costs and the partner should enable faster expansion of the US business. Together with a recently granted loan of €10m from main shareholder Blugreen, Enapter is now fully financed until August 2024. As the overall ramp-up of production and sales is slower than we expected, we have lowered our estimates for 2024 and subsequent years. We now expect that stack mass production will start in 2025 and ramp up fully in 2026. An updated DCF model yields a new price target of €13 (previously: €17). We confirm our Buy recommendation.