Corporacion Acciona Energias Renovables SA (5BP – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Roberto Ranieri from Stifel Nicolaus reiterated a Hold rating on the stock and has a €19.20 price target.
Roberto Ranieri has given his Hold rating due to a combination of factors affecting Corporacion Acciona Energias Renovables SA. The company’s financial performance in FY24 is expected to be weak, with a projected 14% decrease in EBITDA due to lower operating revenues, despite some offset from capital gains through asset disposals. Additionally, net debt is anticipated to rise significantly by 17% year-over-year, reaching €4.4 billion, which is a concern for the company’s financial health.
Despite these challenges, there are positive signs, such as a recovery in power prices in the latter half of 2024 and the company’s ongoing efforts to improve debt ratios through asset disposals. While the asset rotation strategy is expected to maintain relatively stable debt ratios, the overall EBITDA is projected to remain flat from 2025 to 2027. Given these mixed factors, Ranieri maintains a neutral stance, resulting in a Hold rating for the stock.