First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal upgraded the stock to ADD and increased the price target from EUR 18.10 to EUR 26.00.

In November, PNE presented its growth strategy 2023 – 2027 (?Scale up 2.0?) at its capital markets day. The main targets are to (1) increase EBITDA to >€150m (2021: €33m), (2) expand its own green power plant portfolio from 283 MW (end November 2022) to up to 1,500 MW/MWp (planned CapEx: €1.6bn), (3) expand the project pipeline to >20 GW/GWp (9M/22: 11.4 GW/GWp) and sell an average of ~600 MW of projects p.a., (4) expand its Service segment’s wind and PV projects management capacity from 2,200 MW to more than 3,500 MW. This is an ambitious growth plan with a focus on own green power production. Given the expected strong increase in demand for green power and PNE’s project pipeline, we expect the company to be able to reach the 2027 targets. We have incorporated the targets into our segment forecasts and DCF models. An updated sum-of-the-parts valuation yields a new price target of €26.0 (previously: €18.1). We upgrade our rating from Reduce to Add.