PSI AG Downgraded to 'Add' by First Berlin Equity Research

On September 24, 2024, an update from First Berlin Equity Research GmbH was released, which downgraded PSI AG from 'Buy' to 'Add'. This decision follows PSI's Capital Markets Day in Frankfurt, where CEO Robert Klaffus outlined targets for 2028. These targets include achieving sales between €400m and €440m, an EBIT margin of 14%-16%, and generating EPS of €2.80.

The company's growth plans face challenges, including previous cost overruns and a cyberattack in early 2024. PSI intends to achieve its goals through organic growth, improved pricing, strategic use of industrial AI, SaaS product scaling, and international expansion. This higher investment requirement has led First Berlin to adjust its forecasted debt/equity ratio, resulting in a reduced price target from €28 to €26.

The explanatory note from First Berlin states that PSI's goals align closely with their own revenue and EBIT margin forecasts for 2028 but underscores the necessity of increased investment. Consequently, First Berlin has updated its debt/equity ratio forecast from 1.68 to 1.85 for 2024-2028.