Acciona Energy is in luck. After the presentation of their quarterly accounts, some analysis firms have made numbers and have improved their forecasts for the renewable company. This is the case of the Swiss investment bank Credit Suisse, which has raised the target price to 44.80 euros from the previous 39.6 euros, which represents a potential close to 10% compared to current listing prices. In addition, it has improved the EBITDA growth forecast for the 2022-23 period to between 15% and 18%, as well as net profit between 28 and 31%.
“The increase in profitability is due to the higher energy prices achieved,” the experts explain in a report. In his opinion, Acciona Energía continues to be a renewable pure-play. “For the company, the increased urgency to add capacity in Europe as a result of the current geopolitical context is very positive,” they add.
Credit Suisse explains that Acciona Energy expects to add 500MW of renewables capacity in 2022, which is below its previous target (800MW) and the company’s IPO target (1.7GW).
“However, we believe that Acciona Energy can still reach its target of 20GW of installed capacity, due to the favorable regulatory environment, which includes the two-year tariff exemption for solar energy in the US (following the anti-circumvention investigation) and the recent approval of the Inflation Reduction Law (which includes tax credits for renewable energies),” he explains.
Credit Suisse clarifies that while regulatory intervention in Spain remains a risk, it still sees negligible impact on earnings so far, including the 2023-24 tax on windfall profits.
“The draft law on extraordinary profit taxes in Spain, presented at the end of July, will go through Parliament from September. In our opinion, this will be the main catalyst for value in the second half while political risk continues to be the main source of concern for shareholders”, add the analysts of this firm.
The company, which celebrated its first year on the stock market last month, is going through a sweet moment. Its shares, which are up 27% so far this year, are trading at record highs of around 41.46 euros.
Credit Suisse is not the only analyst firm to reinforce its bet on value. According to the Bloomberg consensus, 73.9% of those who have the company under coverage recommend buying while the remaining 26.1% believe it is interesting to keep it in their portfolio. The stock has no sell recommendation.