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 11.50 to EUR 12.00.
PNE has posted excellent Q1 figures due to the outstanding performance of its Electricity Generation segment. Capacity expansion, better wind conditions y/y and much higher power prices resulted in the best quarterly segment result ever with EBITDA of almost €19m. At the group level, PNE increased EBITDA by 151% y/y from €6.3m to €15.8m. The company is thus well on track to reach its €20-30m EBITDA guidance and our €29m EBITDA forecast. In April, PNE expanded its own wind farm portfolio by 19 MW to 253 MW. An updated sum-of-the-parts valuation yields a slightly higher price target of €12.00 (previously: €11.50). We still believe that PNE is roughly fairly valued and reiterate our Reduce rating.
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