That green hydrogen is one of the energies of the future is undeniable and no electricity company wants to be left behind. This Monday, the Spanish company Grenergy announced its landing in this energy with a 5.85 GW solar megaproject in Peru (it would represent almost half of the country’s installed electricity generation capacity). And the reactions of investors and experts were not long in coming after hearing the news. BNP Paribas, Bank of America (BofA) and RBC have increased the valuations of the Spanish renewable energy company’s shares.
Currently, the average price target of analysts is 43.54 euros per share, which still leaves the company with a potential revaluation of 11%. BNP Paribas has adjusted its valuation to position itself in this environment, notably to 42 euroscompared to the 32 previously established (an increase of 31%) and highlight the renewable company’s ability to obtain lower costs from the BESS (Battery Energy Storage System), which allows more capacity with the same investment installation, and the same point. to the acquisition of solar projects in Chile (the largest storage project in the world) as key.
RBC and BofA have already placed their valuations for Grenergy shares above this average price, but their target prices are now even higher. RBC’s analysis team now values the Spanish company’s shares at 70 euros, up from 60 previously, which, based on current prices, gives it an upward trend for the coming months of 78%. From RBC, they also see the reduction of BESS costs and the acceleration of projects in the Atacama oasis as one of the catalysts of the energy sector that will allow it to increase its profits, revenues and value creation with the same level of investment.
BofA analysts even rank Grenergy as “your first option for investing in renewable energy” and raised their target price from €56 to €59 “with a larger Atacama platform, the forecasts of which are now fully integrated into our model and valuation. Our EBITDA forecasts increase by 30% on average between 2026 and 3030, which offers a multi-year EBITDA CAGR of 38% through 2030,” they explain to the American investment bank. From BofA, they also explain that they are adopting a more constructive structure on renewables via batteries and see constructive messages for this subspace, citing, as an example, Tesla’s largest battery business.
Again, Grenergy has seen a 15% stock appreciation so far this year. Only this Monday, after the announcement of the project in Peru, the renewable energy company rose on the stock market by around 11% during the session. This Tuesday, its price increased by another 5%. Thus, during this year, the energy company has gone from a capitalization of less than 1,050 million euros to a current value of almost 1,170 million euros on the Spanish market.
