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 25.00 to EUR 22.00.
PNE has reported Q3 results and held a conference call. Q3 figures were below the prior year numbers and slightly lower than our forecasts. Q3 EBITDA amounted to €-1.7m versus €3.6m in Q3/22 and FBe of €1.2m. Management mentioned volatile supply chains, higher material costs, transport permit delays and higher interest rates as major challenges. This has resulted in project delays, hence the weaker EBITDA. Although PNE has prepared for the more difficult environment with a farsighted procurement policy, we lower our forecasts for 2023 and the following years to reflect increased project risks. PNE has reiterated 2023 EBITDA guidance of €30m to €40m and is sticking to its medium term targets. We expect a strong Q4 due to planned project sales in Romania and Italy. An updated sum-of-the-parts valuation, which takes the lower forecasts and the higher interest rate level into account, yields a new price target of €22 (previously: €25). Given the intact medium term growth drivers for green power (green hydrogen, heat pumps, e-mobility) and PNE’s ?Scale up 2.0? growth plan, we reiterate our Buy recommendation.