First Berlin Equity Research has published a research update on PNE AG (ISIN: DE000A0JBPG2). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 19.00 price target.

Abstract
PNE’s preliminary 2024 EBITDA is between €60m and €70m and thus above guidance of €40m to €50m and FBe of €44.5m. This means that 2024 EBITDA growth is at least 50% y/y. We attribute the higher EBITDA mainly to a much better Project Development result. For 2025, PNE is guiding towards EBITDA of €70m to €110m, while market consensus was €66.1m and FBe €64.2m. The targeted 2025 EBITDA increase is to be achieved through a moderate increase in the volume of project sales. PNE is sticking to its strategy of adding wind and PV projects to its own green power plant portfolio, but at a slower pace. We thus now model a stronger Project segment revenue & EBITDA contribution and a slower expansion of the own plant portfolio (now +90 MW wind in 2025 versus +110 MW previously). We welcome the early publication of 2025 guidance, which increases earnings visibility, and the stronger focus on short-term profitability, which helps PNE to return to positive net results. We have raised our forecasts for 2024E and the following years. An updated sum-of-the-parts valuation confirms our €19 price target. A higher Project Development segment valuation is balanced by a lower Electricity Generation segment valuation. We reiterate our Buy rating.