Edison Investment Research Initiates Coverage on ADS-TEC Energy Highlighting its Role in Energy Transition

Edison Investment Research Limited has begun its coverage on ADS-TEC Energy (ADSE), emphasizing the company's pivotal role in the energy sector's ongoing transition. Based out of London, UK, and as of 9 April 2024, Edison highlights ADS-TEC Energy’s contributions in adapting to the evolving demands of grid and power management within an increasingly electrified world.

ADS-TEC Energy is making strides in the arena of ultra-fast charging systems for electric vehicles (EVs), which is becoming its primary market. This development marks a significant advancement with the company achieving EBITDA positive results in the fourth quarter of 2023. ADS-TEC is thus positioned as a solid investment option offering reduced risk amidst the energy system’s electrification and the expanding electric vehicle market, especially through its charging infrastructure solutions.

Using a discounted cash flow (DCF) valuation method assuming a 12% cost of capital and a terminal growth rate of 2%, Edison has valued ADS-TEC Energy at $12.80 per share. However, the majority of ADS-TEC Energy’s peers are subsidiaries of larger multinational entities, such as Elli being owned by Volkswagen (VW), which poses challenges for direct comparative valuation.