Bank of America reiterates to buy Solaria with a potential of 80%

Share your love

Analysts Bank of America improve their forecasts on Solaria, reiterating his advice to buy the shares of the renewable company with a potential of 80%. Plus it is included in their SMID Cap Europe list of best ideas.

In his opinion, “the current price context in the energy sector supports the announcements of new energy purchase agreements (PPAs), improving visibility on Solaria’s growth objectives”. In this context, the US bank’s experts maintain their purchase advice.

In addition, “the renewable energy sector is preparing for a rebound in sentiment, helped by the multiple projects on clean energy policy that will take place before the end of the year.” They improve the company’s target price to 28.50 euros, which supposes a upside potential 80%, starting from less than 16 euros at which it is currently listed.

At Bank of America, they believe that upcoming developments in clean energy policy will help redirect the market’s attention to renewable energy. They recall that the European Commission must continue taking steps towards its goal of reducing emissions by at least 55% by 2030, which could require an increase of 2.5 times the annual rate of solar and wind installations.

They also consider that the positive context should help Solaria to achieve its goals. short-term goals of 2.1 GW for 2021 and 3.1 GW for fiscal year 2022.

After being one of the star values ​​of the Spanish Stock Exchange in 2020, this year Solaria heads the falls of the Ibex 35, by accumulating decreases of over 33%. Last February, the company received the market’s punishment after presenting a strategic plan.

Read Also   Brussels closes the file for the revolt of the German Constitutional against European justice | International

While announcing a net profit of 30.4 million euros in 2020, 27% accelerated their growth targets in renewable energies from 6.2 gigawatts (GW) by 2025 to 18 GW by 2030. This target, in addition of the 10 GW planned for Spain, it includes an international expansion with 1 GW in Portugal, 3 GW in Italy and 4 GW in other European countries.

Article Source

Share your love