GreenVolt shares climb to €5

GreenVolt shares are changing hands at just over €5 per share for the first time since the renewables energy company was launched on the Lisbon stock market.

The shares from the company managed by João Manso Neto are reacting to the start of research coverage by analysts at CaixaBank/BPI and also BNP Paribas which estimate that the shares will be worth around €5.50 and €5.60 respectively in the coming months.
“The public acquisition offer price was €4.24 per share and the share price has risen 15% since then, compared to 7% gains from Iberian peer companies. GreenVolt has an experienced management team with a multiple approach to technology and geographies which bolsters the credibility of its growth plan. We begin our coverage of GreenVolt with a neutral recommendation”, states a short report signed by Flora Trindade and Bruno Bessa which was sent to clients on Monday.
Taking into account the closing price of the shares, at €4.86, there is a potential target price valuation of 13%. After the initial report to the banks’ investors, GreenVolt shares went up 2% to €5.06 per share, to the highest amount since they were first floated on 15 July. Market capitalisation exceeded €600 million.
“We think that GreenVolt has an attractive growth track record driven by 1) the consolidation of European biomass and the development of best practices for existing structures and 2) the expansion of its solar energy and onshore wind projects, namely through the acquisition of VRidium”, state the BNP Paribas analysts.
A third factor in support of the biomass company’ growth is the possibility for asset rotation which could crystallise value in an initial phase of the project.
“There are certainly opportunities for growth in decentralised energy which at the moment are not sufficiently tangible to be shown in our forecasts,” states the short report.