Warburg Research publishes first research report on Energiekontor AG

Warburg Research, a fully-owned subsidiary of the private bank M. M. Warburg in Hamburg, has initiated its coverage of Energiekontor AG. In his comprehensive research report, the analyst, Arash Roshan Zamir, recommends the Energiekontor shares as a Buy with a price target of EUR 19.00 and 21 percent upside.

This is the second analyst to include Energiekontor in his coverage, as Dr. Karsten von Blumenthal of First Berlin, also lends a Buy recommendation to the Energiekontor stock with a price target of EUR 19.70.

According to Mr Zamir, Energiekontor with its installed wind farm capacity of around 875 MW is one of the leading German project developers. He also states that Energiekontor stands out with its highly competitive portfolio of group-owned wind farms, which has a total output capacity of currently 238 MW. Energiekontor offers “the best of both worlds” with its unique business model, in which the group complements the rather volatile project development business with its stable and cash-generative power generation business.

Owing to its promising project pipeline and the development of new markets such as the Netherlands, France and the US, the company is well positioned for continued and sustainable growth, also in the light of regulatory changes in its core markets of Germany and the UK, the analyst observes.

In addition to extending the market, Energiekontor’s objectives include expanding the solar business and the further expansion of its portfolio of wind farms and possibly also solar parks with inhouse-developed projects. In an increasingly competitive market environment, Energiekontor is introducing various efficiency measures and uses optimisation potential to become the cost leader on the way to generating power from renewable energy sources that is independent of state subsidies. In the medium term, the management of the group forecasts sustainable EBT (Earnings Before Taxes) from project development and the sale of wind farms and solar parks of EUR 30 million p.a. and sustainable EBT from power generation and operational management of wind farms and solar parks of EUR 25-30 million p.a.

Please find more information about the research report on our website under “Investor Relations/Anlegerinformationen/Analystenstudien”.