Barclays prefers Acciona over unit Acciona Energia
05/04/2023 11:30
** Barclays upgrades Spanish renewable energy company
Acciona ANA.MC to "overweight" from the "equal weight" after
it raised its EPS forecasts for 2023
** It says it believes diversified activities will be a key
earnings growth driver in 2023 for Acciona
** Barclays adds Acciona should not trade at a holding
discount, given that it estimates renewable activities represent
about 80% of total EV, while it offers better liquidity than the
renewables affiliate, Acciona Energia ANE.MC
** The broker starts Acciona Energia with "equal weight",
saying its share price already discounts seven years of
renewable pipeline, above six-year average in the renewable
sub-sector
** It finds Acciona Energia's goal to reach 2GW/year
installation rate by 2024 realistic, but says the power price
scenario for the next three years remains the key risk, as for
that period it expects power prices to decline
** It sees low chances of Acciona Energia having to raise
capital in the short to medium term, unlike competitors such as
EDPR EDPR.LS or Neoen NEOEN.PA , but does not rule out new
capital needs in 2024 and beyond
** In order to avoid future EPS dilution, Barclays prefers
Acciona, where the chances of a capital raise are less likely as
the parent company is family owned and has not done a capital
raise in the last 20 years
** The broker rises Acciona target price by almost 16% to
233 euros and sets Acciona Energia target price at 40 euros
(Reporting by Marta Serafinko)
((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))