First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal downgraded the stock to ADD but increased the price target from EUR 103.00 to EUR 109.00.

Abstract
Energiekontor (EKT) increased sales and earnings significantly in H1. Sales rose 30% y/y to €52.4m and EBT by 52% to €12.2m. The strong EBT is attributable to the excellent Power Production segment contribution of €13.5m, which benefitted from good wind conditions and much higher power prices. EKT has expanded its project pipeline by ca. 0.5 GW to ca. 9 GW. In July, EKT added a 27 MW wind farm to the own plant portfolio increasing capacity to ca. 360 MW. Management confirmed 2022 guidance of 10% – 20% EBT growth y/y. We have increased our price target from €103 to €109 to reflect the larger project pipeline and the higher profitability of the Power Generation segment. As the upside potential is now below 25%, we downgrade the stock from Buy to Add.