Euroxx Securities is raising the target price for the share of TERNA Energy in its report, which maintains the “overweight” recommendation for the title.
The stock exchange notes that TERNA Energy, with its history and capabilities, is in a good position to cover a significant share of the required new Renewable Energy projects that are expected to be added to the country’s energy mix.
As he points out, the listed RES portfolio continues to expand. Today, the company’s portfolio includes an installed capacity of 892 MW of GDP (865 MW wind, 18 MW hydroelectric and 9 MW solar) in Greece and Eastern Europe, while it continues to grow dynamically, with the company setting a medium-term goal of 3 GW by 2026. It is noted that the listed company already has a portfolio of solar park licenses with a capacity of approximately 1.1 GW, 2GW storage systems under development, 397 MW of wind farms, as well as 1.8 GW projects in the licensing phase.
Therefore, in its baseline scenario Euroxx expects the company to have an installed capacity of 1,399 MW by the end of 2024. We believe that funding for CapEx for the period 2022-24e of € 660 million will be secured mainly through a combination of strong FCF output and TE leverage capacity (net debt 2021e / EBITDA 4.1x).
The stock exchange also revised its estimates for the size of the company expecting in the period 2021-2024 an average annual increase of sales by 5.9%, EBITDA by 17.8% and adjusted earnings per share by 24.5%.
He also expects that the generous dividend policy of the company will continue, with the dividend yield moving to 2.7-3.5% for the period 2021-2024, much higher than the competing European companies.
Source: Capital
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