Voltalia: Invest Securities says 'buy'

(CercleFinance.com) - Invest Securities has begun to monitor Voltalia shares with a Buy rating and target price of E11.
6.

While the potential may seem ambitious, it should be remembered that (i) the share price was E12.1 at the beginning of June, in the wake of Brookfield's takeover of Neoen, and (ii) discounting the funds raised on the basis of an IRR of 10% (vs. target IRR for projects of 10% to 15%) gives a value of E13.9 per share, it says.

The capping in Brazil and its impact on EBITDA 2024e is penalising ST momentum and partly ruining the financial communication efforts undertaken over the past year. However, the impact is temporary, and Voltalia should return to a much stronger earnings growth dynamic from 2025 onwards, Invest Securities adds.

The analyst believes that if the revaluation takes too long to materialize, the company and its reference shareholder could be tempted by alternatives to finance its development beyond 2027, with the key being a delisting incorporating a substantial premium, as was the case for Neoen.


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