First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and decreased the price target from EUR 22.00 to EUR 21.00.

In 2023, PNE increased EBITDA 13% y/y to €39.9m and reached the upper end of guidance (€30m – €40m). EBITDA topped our forecast by 15% due mainly to a better than expected contribution from the Electricity Generation segment. PNE expanded its project pipeline by 61% y/y to 19.1 GW and added 51 MW to its onshore wind own plant portfolio, which now has a capacity of 370 MW. Wind farms with a total capacity of 281 MW currently under construction should be added over the next 24 months. The portfolio thus looks set to expand significantly to 651 MW. PNE is guiding towards 2024 EBITDA of €40m – €50m. An updated sum-of-the-parts valuation yields a €21 price target (previously: €22). The main reasons for the lower price target are lower margin assumptions in the service business and a higher net debt position in the Electricity Generation segment. Given the strong project pipeline and the rising green power portfolio capacity, we see PNE on track with its growth strategy ?Scale up 2.0? and reiterate our Buy recommendation.