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 126.00 to EUR 120.00.

Abstract
Energiekontor (EKT) has published its interim status report for 9M/24, which gives a qualitative update on business development. Sentiment for renewable energy stocks took a hit following the US presidential elections which Donald Trump won. Following the end of the German traffic light coalition, a snap election in February will likely result in a conservative-led new government. We expect a less ambitious policy regarding renewable energy. Management still sees considerable pressure from longer project realisation times and delays in grid expansion, which could also hamper EKT’s business in 2025. With a total volume of ca. 1.1 GW in approved projects and an own power generation portfolio of 395 MW, EKT remains in a strong position to weather current challenges. The very high volume of approved projects looks set to generate high EBT from project sales from 2026E on. We have lowered our forecasts for 2024E (weaker wind conditions than expected) and for 2025E (longer project realisation times). We now also assume a slower expansion of the own plant portfolio than previously. An updated sum-of-the-parts valuation yields a new price target of €120 (previously: €126). We confirm our Buy recommendation.