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 13.00 price target.

The joint venture (JV) between Enapter and Wolong will acquire AEM stacks from Enapter to manufacture AEM electrolysers in China. Wolong holds 51% of the JV and will finance and establish production. The JV will receive an exclusive production and sales license for China, and Enapter will receive a royalty of 3% of future sales. The JV should enable Enapter to penetrate the Chinese market quickly without having to invest its own financial resources. We see the JV as a confirmation of our growth forecasts and reiterate our Buy recommendation with an unchanged €13 price target.