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 11.00 price target.

Abstract
The Enapter Information Day in Pisa, Italy, showed that the company is definitely on the right track, both strategically and operationally. Strategically, Enapter’s management has set the right course. Business in the US with the new partner Clean H2 has already generated incoming orders of >€5m in the first four months of the cooperation. The joint venture with the Chinese partner Wolong promises a rapid expansion of electrolyser production in China at significantly lower costs than in Europe. This should significantly strengthen the competitiveness of Enapter’s AEM technology and soon eclipse the PEM technology of its competitors. The strategy adjustment – concentrating on stack development and production in Pisa and accelerating electrolyser production and sales via partners – means that the factory in Saerbeck, originally planned as an electrolyser mass production facility, is no longer needed and is therefore to be rented out. We expect rental income of around €2m p.a. We believe that Enapter is currently very well positioned to benefit from the growing electrolyser market. Following the successful strategic realignment, we believe that securing financing until a positive free cash flow is achieved is the last remaining hurdle to global success. We have adjusted our forecasts to reflect the realignment. An updated DCF model yields an unchanged €11 price target. We confirm our Buy recommendation.