Euroxx: Raises the target price of TERNA ENERGY to 18 euros

Euroxx Securities proceeded with the revision of the share price of TERNA ENERGY.

Stock market analysts stake it at 18 euros against 16.50 euros which was its previous forecast. The new target price is 42% higher than the current levels.

Euroxx in a special report estimate that TERNA ENERGY with its steady course and the possibilities of execution of projects and implementation of its investment plan is in a good position to reap a significant share of new RES 10 GW projects to be developed in our country. Analysts remind us of the goal set by our country so that in 2030 RES will rise to 18.9 GW from 8.9 GW today. The total investments will be of the order of 43 billion. while the Commission has already approved aid schemes of € 3.7 billion euros for RES in the interconnected system but also in islands that are not interconnected.

The above, according to the Euroxx report, is the new institutional framework for the licensing of RES that the government will have ready by the end of the first half.

Expansion of the portfolio

Euroxx refers to the RES portfolio of TERNA ENERGY which currently consists of an installed capacity of 892 MW (wind 865 MW, 18 MW hydroelectric and 9 MW photovoltaic) in Greece and Eastern Europe.

According to analysts, the listed company continues to grow dynamically, targeting 3 GW by 2026.

TERNA ENERGIAKI already has a portfolio with licenses for the production of solar parks 1.1GW (110MW wind turbines ready for construction), 2GW of storage systems under development (including 680MW Amfilochia and with an approved grant of 39m euros), 397MW of under construction wind farms and 1.8 GW in the end of the licensing phase. “Therefore, in our basic scenario, we now expect that the capacity will reach 1,399MW by the end of 2024, which implies new additions of 507MW in Greece. We believe that funding for CapEx 2022-24e will amount to € 660 million,” said Euroxx.

Profit dynamics

Euroxx analysts note strong profit potential for TERNA ENERGY.

“Overall, our new estimates continue to suggest strong earnings dynamics, with sales of 5.9% and EBITDA of 17.8%.

It also estimates “a generous dividend distribution policy with a total return (DPS and / or capital return) of 2.7% -3.5% in the period 2021-24, far ahead of similar European companies.