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 20.00 to EUR 19.00.

Abstract
In 2024, PNE sold six wind energy and photovoltaic projects with a total output of 751.3 MW/MWp. Q4/24 looks set to deliver particularly strong results due to the sale of the German wind farm projects, Papenrode (59 MW) and Lütau (29 MW). We have thus slightly raised our 2024 EBITDA forecast to €45m, which is still in line with guidance (€40m – €50m). With the sale of its Swedish business, PNE has further strengthened its regional focus and exited a market plagued by low power prices and intensifying competition. Interim CEO Pedersen stressed the importance of a bankable balance sheet and a stronger focus on short-term profitability. We believe that the new CEO Wuttke, who took over on 13 January, will communicate his strategic priorities with the publication of the 2024 annual report on 27 March. We expect a more balanced approach between project sales and expansion of the own wind farm portfolio (more project sales and slower portfolio expansion). As our earnings forecasts hinge on the exact formulation of the future strategy, we will revise them as soon as the new strategy is presented. We anticipate a strong operating performance for 2025E-2027E as PNE has 13 wind farms with an output of 289 MW under construction in Germany and France, and received awards for 156 MW in the German onshore wind tenders in 2024. We have revised our segment forecasts and assume higher project sales and slower portfolio expansion. An updated sum-of-the-parts valuation yields a slightly lower price target of €19 (previously: €20). We confirm our Buy recommendation.