Stifel cuts Energy to 'hold' as change in subsidies could mean slower growth
06/07/2023 09:48
** Stifel downgrades Italian energy storage company Energy
ENRY.MI to "hold" from "buy", as it predicts slower growth
mainly due to changes in Italy's energy subsidy scheme
** We are now seeing an increased likelihood of a slower
growth scenario ... hence moving on the sidelines," the broker
says after Energy's preliminary H1 sales report on Tuesday
** The firm, which leads the national market in energy
storage systems, reported a 27% drop in preliminary H1 revenue,
citing a temporary deceleration in photovoltaics and energy
storage segments
** The management said the slowdown was caused by a "freeze
of the tax credit" between February and April, which nonetheless
enabled Energy to achieved an EBITDA margin of 20%
** Stifel deems the margin "surprisingly strong" given the
decline in sales volumes, a likely surge in investments since
2022, and the announced increase in supply costs for 2023
** Stifel notes the company maintains a 30% growth outlook
for the period going into 2024, but did not mention a sales
guidance for the current fiscal year
(Reporting by Alberto Chiumento)
((Alberto.Chiumento@thomsonreuters.com;))