First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his REDUCE rating and increased the price target from EUR 12.00 to EUR 15.20.
PNE has reported Q2 results and held a conference call. Q2 sales and operating earnings were roughly in line with our forecasts. With H1 EBITDA of €17.5m, the company is well on track to reach its €20m – €30m EBITDA guidance. We assume that H2 Electricity Generation segment EBITDA will even surpass the H1 record value of €29.8m (FB full year forecast: €65.7m), given the current very high power price level and the expansion of the wind farm portfolio by 28 MW to 261 MW in Q2/22. As PNE is in the sales process with projects in various countries, we believe that there is a high likelihood that H2 Project segment figures will be better than in H1. We thus increase our 2022E EBITDA forecast for the group to €50m and expect PNE to raise guidance as soon as visibility for H2 (power prices, project sales) increases. PNE has expanded its project pipeline significantly, especially in the PV segment. The total pipeline adds up to almost 11 GW (6.6 GW wind and 4.2 GW PV). The larger project pipeline and the excellent power pricing environment result in a higher valuation. We now see fair value at €15.20 (previously: €12.00). We reiterate our Reduce recommendation.