2G Energy AG Faces Challenges Despite New Order

2G Energy AG received a substantial order of 275 MW from Energy Vault Holdings for power generation systems, boosting its stock by 9.5%. However, Parmantier & Cie. GmbH maintains a "Sell" recommendation, with a target price of €39.00, significantly lower than current levels. Though the order improves revenue visibility for 2028, it will not impact 2026 results as deliveries are set for 2027-2028.

Several concerns exist. Energy Vault has also ordered from Rolls-Royce MTU, and lacks a finalized contract with an end customer. Furthermore, Energy Vault shows limited equity, which raises doubts about financial backing. 2G's expected weak first-half results and a potential need for a capital increase underline these challenges.

For investors, the new order doesn't yet translate into immediate revenue or cash flow. Given existing uncertainties and funding needs, Parmantier advises caution, deeming current valuations optimistic.