First Berlin Equity Research has published a research update on Enapter AG (ISIN: DE000A255G02). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 5.00 price target.

Abstract
There is no question that the market for green hydrogen is developing much more slowly than originally hoped. The hydrogen hype was followed by a trough of disillusionment. However, we have noticed that for some months now the mood is worse than the situation. Many final investment decisions (FIDs) have now been made, numerous electrolysers are under construction and Germany in particular has initiated the construction of a hydrogen core network with forward-looking regulation. The first sections have already been completed. It should also be helpful that Katharina Reiche, an experienced hydrogen expert, has become German Federal Minister of Economic Affairs. According to the IEA, global water electrolysis capacity is expected to have reached around 5 GW by the end of 2024. If the projects already announced are implemented, capacity could increase to up to 520 GW by 2030. Despite the still negative mood, we are therefore operating in a structural growth market. Enapter is one of the electrolyser producers that were able to significantly increase production and incoming orders in 2024. In addition, the company made an important strategic decision last year to focus on stack production, which allows for less capital-intensive, less risky and faster scaling of the business model. Enapter is currently carrying out a capital increase to finance its increasing working capital requirements. The company is offering almost 2.1 million shares at €2.90 per share. If fully placed, the gross issue proceeds will amount to approximately €6m. In May, the order backlog stood at €45m, of which around €33m is expected to be shipped in the current year and €12m in 2026. For the current year, Enapter is guiding towards sales of between €39m and €42m and EBITDA of €-2m to €0m. We see a good chance that Enapter will reach the lower end of the guidance range for sales and EBITDA despite the tariff chaos caused by Trump and his anti-clean energy policies. We have already factored the capital increase into our model. With hardly altered forecasts, we reiterate our Buy recommendation with an unchanged price target of €5. Upside potential: >90%.