CR Energy AG Target Price Adjusted after Bonus Shares Issuance

NuWays AG has released an update on CR Energy AG, with a recommendation to buy, setting a target price of €12.00. The recent capital increase via bonus shares led to this adjustment. CR Energy opted for bonus shares over dividends to enhance the stock’s visibility and liquidity, increasing share capital to €23.5 million without diluting shareholdings.

CR Energy’s management expects to resume dividend payments next year. The company remains well-positioned in the housing market through its subsidiary, Terrabau, which focuses on affordable housing in East Germany, particularly in Berlin. Notably, Berlin incentivizes social housing with attractive financial support.

Another key development is the expected launch of CR Opportunities' first European Long Term Investment Fund (ELTIF) later this year. This closed-end fund will include properties from Terrabau and aims to increase assets under management by €100 million annually until 2027.

The revised target price reflects the higher share count from the bonus shares, not a change in the company's valuation. The stock remains a buy.