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 26.00 to EUR 25.00.
PNE, since June 2022 an SDAX member, has reported final 2022 figures which were in line with preliminaries. EBITDA rose 8% y/y to €35.4m (preliminary figure: €34m – €36m), which exceeded initial guidance of €20m – €30m. The own wind farm portfolio was expanded from 233 MW to 319 MW (+37% y/y). This and better wind conditions resulted in power production rising from 295 GWh to 509 GWh (+73% y/y). PNE expanded its project pipeline from 6.9 GW to 11.9 GW (+72% y/y). In the Service segment, the capacity which is operationally managed rose from ca. 2.0 GW to ca. 2.5 GW. All KPIs show that 2022 was a successful year for PNE. The company has confirmed its medium-term growth plan (?Scale up 2.0?) and expects 2023 EBITDA between €30m and €40m. 2023 guidance is below the consensus EBITDA forecast (€55m) at the publication date and our previous EBITDA estimate (€44m). Our new cost projections result in lower EBITDA forecasts for 2023E – 2025E. PNE’s stock took a first hit when Morgan Stanley announced in January that it no longer plans to sell its 44% stake. The stock has fallen further since PNE published 2023 guidance below consensus. However, we believe 2022 has shown that PNE is well on track to reach its medium-term growth targets. We view the current share price level as an attractive buying opportunity for long-term investors. An updated sum-of-the-parts valuation yields a new price target of €25 (previously: €26). We confirm our Buy recommendation.
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