Montega starts CENTROTEC coverage with 25 EUR target price

Montega AG analyst Wais Samadzada awards a buy rating in his first rating of the shares of CENTROTEC (ISIN DE0005407506 / WKN 540750). The target price is quoted as EUR 25.

Analysts at international banks such as HSBC Trinkaus, Berenberg, M.M. Warburg and Commerzbank as well as independent analysts like Solventis have been monitoring the shares of CENTROTEC Sustainable AG for a number of years now, and publish their ratings and recommendations on a regular basis. A new voice has now joined them: Wais Samadzada, from Montega AG. Hamburg-based Montega AG is a rapidly growing equity research house that currently analyses around 30 publicly listed small und midcap companies. The conclusion of the first study published on January 14, 2011 analysing the shares of the SDAX-listed company CENTROTEC was "buy". Samadzada explained: "The shares' rating with a 2011e price/earnings ratio of below 10 is still a long way off adequately reflecting the company's strong growth and resistance to cyclicality." He added that the target price based on a DCF model is EUR 25.

Montega quoted the following reasons for the buy rating, which include both company-specific factors and market effects:

• The company is set to profit directly from a recovery in building activity in Europe.
  
  
• In Germany, the renewal rate of 3 % for the acutely obsolete installed heating systems needs to be at least doubled if the government is to achieve its climate protection targets, creating a latent obligation for regulatory intervention.
  
  
• Controlled ventilation in new buildings and renovated older buildings is becoming increasingly important in view of their growing air tightness and more effective insulation.
  
  
• Since 2010 CENTROTEC has been able to offer a self-developed family of heat pumps delivering outstanding efficiency values, and has had access to expertise in co-generation since 2008.
  
  
• The debt ratios are sound, with the result that the resumption of its successful acquisition strategy can soon be expected.

Dr. Gert-Jan Huisman, CEO of CENTROTEC Sustainable AG, responded: "Montega is a research house that specialises in niche markets and has a distinct target group. We are consequently delighted at this new coverage for our shares."