BofA starts Grenergy at 'buy' as it sees further value from Chile project
17/06/2024 13:05
** BofA Global Research initiates Grenergy GREG.MC at
"buy", saying the next milestones in the Spanish renewable
energy firm's Atacama project in Chile should crystallise value
** Grenergy's shares jump 7.1% to 32.60 euros, their highest
since early February
** BofA sets its PT to 52 euros per share
** Securing financing for the Chilean project this summer
and phase 1 being operational by year-end should be the next
catalysts for the stock, it says
** Falling battery costs offer an upside from lower capex in
the next phases of the project, it adds
** It says Grenergy's solar plant and battery projects will
significantly change its scale and scope, and highlights the
company's good track record in Chile
** "While there are inherent execution risks when buying a
small company that is drastically changing scope, we believe the
rewards outweigh the risks," BofA says
(Reporting by Jakub Olesiuk)
((jakub.olesiuk@thomsonreuters.com))