EQS-News

Energy S.p.a.: GBC Research initiates coverage with buy recommendation and target price of EUR 2.75

EQS-News: Energy S.p.A. / Key word(s): Research Update Energy S.p.a.: GBC Research initiates coverage with buy recommendation and target price of EUR 2.75  18.04.2024 / 09:30 CET/CEST The issuer is solely responsible for the content of this announcement.  Energy S.p.a.: GBC Research initiates coverage with buy recommendation and target price of EUR 2.75

Strong market position in the field of Battery Energy Storage Systems (BESS) on the Italian domestic market.
Internationalization offers considerable growth potential.
Analysts determine a fair enterprise value of EUR 2.75 per Energy share.  

Sant'Angelo di Piove di Sacco (Padua, Italien), April 18, 2024 – GBC Research has added Energy S.p.a. (ISIN IT0005500712, ticker ENY) to its coverage. Based on the detailed initial study, the analysts recommend buying the shares of the specialist for Battery Energy Storage Systems. The target price is EUR 2.75. The Energy share is currently trading at around EUR 1.35.

From the analysts' perspective, Energy is a beneficiary of the booming demand for renewable energies and the associated grid services. Energy is contributing to the green transformation in the European energy sector with fully integrated Battery Energy Storage Systems, which are often used in the context of renewable energies. Due to the boom in energy production from solar, wind and other sources, almost 44% of the Eurozone's energy mix is now covered by renewable sources (source: Ember think tank). This also increases the need for efficient storage systems.

The strong market position in the Italian domestic market provides a good basis for driving forward internationalization in the coming years. In GBC's view, this should also become the driver for Energy's sales and earnings growth in the coming years. After sales of EUR 63.33 million and EBITDA of EUR 10.12 million in 2023, the analysts expect significant increases in the coming years. In 2026, Energy is expected to generate sales of EUR 83.46 million and EBITDA of EUR 14.70 million. In addition to the export business with a focus on Europe, the expansion of the product portfolio to include large and extra-large Battery Energy Storage Systems (XL product line) should also contribute to growth.