First Berlin Equity Research Reaffirms "Buy" Rating for Energiekontor AG

First Berlin Equity Research GmbH has published a research update on Energiekontor AG (ISIN: DE0005313506) affirming its "Buy" recommendation with a target price of €126.00. Analyst Dr. Karsten von Blumenthal confirmed the rating amid recent declines in the sector.

Over recent weeks, Energiekontor's share price dropped close to 20% as industry sentiment soured. The global RENIXX renewable energy index fell 11% year-to-date. Additionally, peer companies SMA Solar and 7C Solarparken issued profit warnings, while right-wing parties opposing green energy gained traction in Germany, the EU, and worldwide.

Despite these challenges, the regulatory landscape remains favorable with initiatives such as the EU's Green Deal and the USA's Inflation Reduction Act. These factors are expected to positively impact the wind and solar sectors in the coming years. Energiekontor is projected to meet its 2024 earnings before taxes (EBT) guidance of €30m-€70m and significantly boost its EBT in 2025 to €90m, up by 76% year-on-year.

Energiekontor has a clear growth strategy targeting an EBT of €120m by 2028. It anticipates strong earnings growth, with a 2028 net result nearly double that of 2022 (€83m vs. €45m). The company is attractively valued at a 2025 P/E ratio of 15x. First Berlin Equity Research stands by its forecasts and €126 price target.