First Berlin Equity Research has published a research update on PSI SE (ISIN: DE000A0Z1JH9). Analyst Simon Scholes reiterated his BUY rating and increased the price target from EUR 36.00 to EUR 40.00.

Abstract
PSI’s order intake jumped 66.3% to €158m in Q1/25 due to the conclusion of the partnership with E.ON announced in February, and catch-up effects following the cyberattack in early 2024. However, contributions from E.ON are likely to be lower in coming quarters and so growth in the order intake is likely to slow. Q1/25 sales and EBIT were respectively 3% and 16% above our forecasts. But given that reported Q1 EBIT is under 20% of our full-year forecast, we are leaving our FY/25 sales and EBIT projections unchanged. We had previously assumed that investment ahead of the deployment of new cloud/SAAS products would constrain margin expansion in 2026 at the Grid & Energy Management and Discrete Manufacturing business units. In our most recent study of 25 April, we modelled a decline in the EBIT margin from 2025 to 2026 at the former business unit from 3.9% to 3.0% and at the latter a modest improvement from -1.0% to 0.0%. We now think that these numbers are overly conservative and that ongoing efficiency improvements (simplification of business structure, better project management, improved productivity) will allow margin expansion at these business units in 2026 to 5.5% and 3.0% respectively. Based on upgraded earnings forecasts, we raise our price target from €36 to €40. Our recommendation remains unchanged at Buy. Upside: 32%.