PSI SE Target Price Raised Amid Strong Q1 Results

First Berlin Equity Research has released an update on PSI SE, reaffirming a "BUY" recommendation and increasing the target price from €36 to €40. This decision follows a significant 66.3% surge in order intake for Q1/25, reaching €158 million. The rise is attributed to a partnership with E.ON and recovery from a 2024 cyberattack. Despite this growth, future contributions from E.ON might decrease, potentially slowing order intake growth.

Q1/25 sales and EBIT exceeded expectations by 3% and 16%, respectively. However, due to the Q1 EBIT comprising less than 20% of the full-year forecast, projections for 2025 sales and EBIT remain unchanged. Efficiency improvements in business operations are expected to facilitate margin expansion in 2026, prompting the updated price target.