First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 126.00 price target.

Abstract
In recent weeks, Energiekontor’s share price has declined by almost 20% as sector sentiment has worsened. The global renewable energy index RENIXX is down 11% YTD, peers (SMA Solar, 7C Solarparken) have recently issued profit warnings, and right-wing parties which do not support green power are on the rise in Germany, the EU and globally. However, the supportive regulatory environment (EU: Green Deal, Germany: EEG, Solarpaket I, BImSchG, USA: Inflation Reduction Act) will continue to exert a very positive effect on wind & solar in the coming years. We are thus very confident that Energiekontor will reach 2024 guidance (EBT: €30m – €70m, FBe: €51m) and will significantly increase 2025 EBT (FBe: €90m, +76% y/y) because of significantly higher project sales and a high EBT contribution from the own green power portfolio. EKT has a crystal clear growth strategy and targets 2028 EBT of €120m. We are convinced that EKT will deliver strong bottom line growth and forecast that the 2028E net result will be almost twice as high as the 2022 figure (€83m versus €45m). Given the strong short-term (2025) and medium-term (2028) growth prospects, we believe that the company is attractively valued at 2025 P/E of 15x. We confirm out forecasts. Our price target remains at €126. Time to BUY the stock.