- GVC Gaesco Beka places the target price at 9.25 euros, equivalent to a capitalization of about 200 million
- The report agrees with Greenalia’s EBITDA estimation, which foresees 100 million euros in 2023
- The publication of this report concurs with the nomination of the company, for the second year in a row, to represent Spain in the “European Small and Mid Cap Awards“, in the “Star 2019” category
Greenalia has a market upside potential of 44.50%, until it reaches a stock market capitalization equivalent to around 200 million euros, according to the estimation made by the research company GVC Gaesco Beka.
The Report places the target price of Greenalia’s shares at 9.25 euros, which would mean a positive performance of 355.66% from its IPO in December 2017. The value increase would be 26,72% considering the closing of 2018, date on which the share was quoted at 7.30 euros. In the 2019 period, Greenalia has recorded its maximum value at 8.4 euros.
GVC Gaesco Beka makes this estimation analyzing three bullish catalysts that affect Greenalia:
Demand and regulation context: where the goal by 2030 means a penetration of renewable sources of at least 35% in the final consumption, and, in this same year, the generation of the electrical system will proceed in 70% from renewable origin, becoming 100% in 2050.
Improving the profitability of renewables: the development of technology is evolving into an improvement in the efficiency of assets, with a fall in investment costs, and therefore, an improvement in competitiveness.
Financing environment: nowadays, the renewable energy sector has excellent financing conditions; in addition, there is the possibility of capital gains from giving access to financial partners in projects developed by Greenalia itself.
In addition, Gaesco highlights, as differentiating elements of Greenalia against other peers, “their know-how, their access to raw materials and their assets for the collection, processing and transport of biomass on the generation of electricity with that fuel “
In the preparation of its report, GVC Gaesco Beka has analyzed the start-up estimations of all the projects that Greenalia has identified in its Strategic Business Plan until 2023, concluding the following:
- The estimated EBITDA for 2023 is 140 million euros
- The average margin of the company would be 60.5% as a result of the mix of activity between the three technologies (biomass, with an EBITDA margin of 40-50%, wind with 70-75% and SPH with 75-80%)
Greenalia closed the year 2018 with a consolidated turnover of 35.4 million euros and an EBITDA of 2.31 million. The company expects to make the big leap in 2020, when the Curtis-Teixeiro biomass plant goes-live and wind projects -that are being developed in Galicia- will be in production.
Greenalia is an independent power producer (IPP) exclusively with renewable technologies. The company uses only wind, sun and forest biomass, from the remains of certified plantation cuttings, to generate electricity in harmony with nature, and providing employment and innovation in the areas where it operates.
Since 2017, it is present in the Alternative Stock Market (MAB), behaving as one of the best values for performance. Greenalia has its headquarters in A Coruña and production centers planned in Galicia, Asturias, Extremadura, Valencian Community, Andalusia, Murcia and Castile and La Mancha.