First Berlin Equity Research has published a research update on PSI SE (ISIN: DE000A0Z1JH9). Analyst Simon Scholes reiterated his ADD rating and decreased the price target from EUR 26.00 to EUR 25.00.

Abstract
PSI’s Q3 report showed results continuing to rebound from the impact of the mid-February cyberattack. Q3/24 sales were flat at €65.1m (Q3/23: €65.2m; FBe: €62.0m), but EBIT came in at breakeven (Q3/23: €2.6m; FBe: €1.6m) after losses of €-14.8m and €-4.6m in Q1/24 and Q2/24 respectively. The order intake was down 36.2% at €44m (Q3/23: €69m) in Q3/24 after falling 8.9% at the H1/24 stage. The increase in the rate of decline was attributable to a Q3/23 order intake which was 25.5% above the Q2/23 level and included large orders from Malaysia; the Swiss transmission grid operator, Swissgrid (both Energy Management); and the footwear retailer, Deichmann (Production Management). We expect EBIT to improve further to €4.6m in Q4/24, bringing FY24 EBIT to €-14.8m – in line with management guidance that this metric will not undershoot €-15m. Following the Q3/24 results and analysts’ call, we now take a more conservative view of the pace of recovery in sales at Energy Management, having reduced our 2025 segment sales forecast by 11.7% and made similar reductions for subsequent years. However, we continue to expect the introduction of the “Control System of the Future” to push Energy Management’s EBIT margin towards double digits over the next five years. As we expect Production Management to account for around two thirds of EBIT in the medium term, the impact of the Energy Management sales forecast reductions on our price target is relatively small. We now see fair value for the PSI share at €25 (previously: €26). We maintain our Add recommendation.