Enerjisa Enerji: Bigger, better, faster, stronger (stays BUY)

We reiterate our BUY recommendation on Enerjisa Enerji, with a new 12M price target (PT) of TRY 14.9/share (from TRY 10.0/share), which implies 50% upside. We are well aware that the most important triggers are behind us: the new terms for this regulatory period and the reimbursements for the previous period are known, and the dividend has been paid. That said, after updating our model for the new regulatory structure, we still believe that Enerjisa remains too cheap to ignore. Following the recent weakness caused by the Turkish market sell-off, the stock is trading at 2021-23E EV/operational earnings of 2.5-3.1x, on our estimates, well below its peers and its own historical averages. Enerjisa has secured the financing for this and, partly, next year already, it generates hefty FCF, and it faces a double-digit earnings growth outlook in the coming years, on our estimates. Enerjisa remains one of our top picks, thanks to its attractive valuation, solid growth and generous dividends, but also its transparent ESG disclosure. Moreover, we still believe that Enerjisa, listed in 2018 and operating in a very complex regulatory environment, remains undiscovered by the international community. Over time, we believe that Enerjisa should be able to narrow the valuation gap vs. its foreign peers.