A new Edison share price for Mytilineos maintains a high target price of 24 euros, emphasizing that the company has secured strong cash flows for the coming years in order to finance investments in the direction of the Energy Transition, which is then expected to lead to great growth in its sizes.
The report is accompanied by a strong “buy”, with the upward margin being close to 55%.
In addition to the forecast for the expected significant increase in profitability in the last four months of 2021 and its doubling in 2022, compared to 2020, the Edison analyst focuses on further enhancing the profitability of Mytilineos, in the next decade, focusing on the “Green Development”.
As mentioned, Mytilineos, due to its strong financial position, aims to reduce emissions more than any other aluminum producer in the world. This reduction is estimated to be achieved both through the increase of recycled aluminum but mainly from the use of electricity, derived from Renewable Energy Sources, for the production of aluminum.
Therefore, Edison claims that all Mytilineos aluminum production, from 2025, will qualify to be on the list of selected companies which, for S&P Global Platts (Standard and Poor’s), are considered “low emission companies” carbon “and therefore will be able to reap much higher prices of aluminum.
Finally, the analyst emphasizes that the financial adequacy of Mytilineos, due to the enhanced operating cash flows of recent years in combination with the existing lending lines, enable the company to be able to control the pace of implementation of its investment plans, with the priority at this time to be part of the rapidly growing renewable energy sources. The fact that the company maintains the advantage at all times, to utilize the RES projects in the portfolio of the RSD Sector and the funds from these sales to be reinvested in the RES portfolio of the company could strengthen this.
Therefore, Edison’s analysis concludes that Mytilineos’ “Green Go” is fully funded and will play a key role in further increasing the company’s profitability in the coming years.