First Berlin Equity Research has published a research update on Energiekontor AG (ISIN: DE0005313506). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 138.00 to EUR 116.00.

Abstract
Energiekontor (EKT) has published its interim status report for Q3/23, which gives a qualitative update on business development. At the end of the nine month period, EKT had sold more MW (116 versus 96), and commissioned more MW (109 versus 94) than in the full year 2022. As the company expects to commission and sell further projects in Q4, we are confident that Project segment EBT will be significantly higher in 2023 than in the previous year. We thus still believe that EKT will increase 2023 group EBT by 10% (lower end of guidance), despite expected lower EBT contributions from the other segments. However, we have lowered our forecasts for the coming years to reflect the higher interest rate environment and increased project risks. Despite these challenges, the medium-term drivers for higher green power demand (green hydrogen, heat pumps, e-mobility) are intact. An updated sum-of-the-parts valuation yields a new price target of €116 (previously: €138). We reiterate our Buy recommendation.