Report
EUR 400.00
For Business Accounts Only
SLR is a renewable player and developer, vertically integrated and with a single technology (solar PV), with 807 MW in operation (1Q’21) and a target of 6,200 MW through 2025 (and 18,000 MW through 2030). Its strategy of being present in the phases with higher value added and its in-house profile result in a profitable growth story (~12% IRR, in a normal farm) in an industry with positive prospects. Our estimates assume 100% of SLR’s targets in 2027, meaning 63% of the delivery of SLR’s plan through 2025. With this in mind, we estimate a +24% CAGR’20-30 in EBITDA, with the company no longer burning cash in 2028 BS(e) after the completion of the expansion plan. Our T.P. assume implicit ratios of 22.9x EV/EBTIDA’22 and 36x P/E (vs. 16.6x and 42.4x for its peers and vs. 18.3x and 23.8x currently).
SOLARIA: WITH MARGIN FOR IMPROVEMENT (ANÁLISIS BANCO SABADELL)
The delays of the strategic plan are already priced in. We initiate coverage with a € 21.70/sh. T.P., yielding +42.7% upside and BUY recommendation.SLR is a renewable player and developer, vertically integrated and with a single technology (solar PV), with 807 MW in operation (1Q’21) and a target of 6,200 MW through 2025 (and 18,000 MW through 2030). Its strategy of being present in the phases with higher value added and its in-house profile result in a profitable growth story (~12% IRR, in a normal farm) in an industry with positive prospects. Our estimates assume 100% of SLR’s targets in 2027, meaning 63% of the delivery of SLR’s plan through 2025. With this in mind, we estimate a +24% CAGR’20-30 in EBITDA, with the company no longer burning cash in 2028 BS(e) after the completion of the expansion plan. Our T.P. assume implicit ratios of 22.9x EV/EBTIDA’22 and 36x P/E (vs. 16.6x and 42.4x for its peers and vs. 18.3x and 23.8x currently).
Underlying
Solaria Energia y Medio Ambiente S.A.
Solaria Energia y Medio Ambiente manufactures both solar and thermal cells and panels, rolls out turnkey projects for large installations, operates solar plants and generates electricity through its owned plants.
Provider
Sabadell
Rafael Bonardell
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