Report
Jon Masdal
EUR 91.47 For Business Accounts Only

Scatec Solar (Hold, TP: NOK160.00) - Favourable long-term trends, but 2021 growth target at risk

We expect Q2 EBITDA of NOK406m, above consensus of NOK382m, due to our higher power production estimate (results due at 07:00 CET on 17 July). We like the long-term fundamentals, but see a near-term earnings headwind for Development & Construction (D&C) given the lack of recent project awards. Following a change of analyst, we reiterate our HOLD but have raised our target price to NOK160 (145).
Underlying
Scatec ASA

Scatec Solar ASA is a Norway-based integrated independent solar power producer. It develops, builds, owns, operates and maintains solar power plants, and has several projects under development in Africa, the United States, Japan, Brazil the Middle East and Europe. The Company has three operating business segments: Power Production (PP), Operation & Maintenance (O&M), and Development & Construction (D&C). The PP segment comprises the Kalkbult and Linde plants in South Africa, the ASYV plant in Rwanda and four plants in the Czech Republic. The O&M includes services provided to solar power plants in which Scatec Solar participates or to third party plants constructed by the Company. The D&C comprises development activities as well as construction of solar power plants developed by Scatec Solar.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Jon Masdal

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