Neoen: Stifel still a buyer, reduces target price
(CercleFinance.com) - Stifel reiterates its "buy" rating on Neoen shares, having reduced its target price for them from 52 euros to 48 euros, after updating its financial estimates for the renewable energy group through to 2025.
The broker expects average annual growth rates of 21% for EBITDA and 48% for earnings. It expects operational capacity of 3.5 GW by the end of 2021, 4.5 GW by the end of 2022 and 8.8 GW by the end of 2025.
After discussions with local journalists about a potential energy reform in Mexico, its likelihood "is very low today", it warns that "there could be financial consequences for Neoen if it is, most probably before the summer of 2022".
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