in

Goldman Sachs cuts Solaria rally by lowering recommendation to neutral

Goldman Sachs has lowered the rating of the Spanish renewable energy company Solaria to “neutral” from “buy” after its strong performance in 2020 when it appreciated 247%. Since November 18, Solaria shares have risen 64%, compared to 4% for the sector and now the US bank’s experts consider that its upside potential has been exhausted.

The US investment bank, however, raises its target price on Solaria from 24 to 25.5 euros per share, which implies falls in the stock market since it is currently trading at 27.64 euros.

This Friday, Solaria shares fell about 11% on the Ibex 35 this Friday and led the declines in the Spanish index. The fall of Solaria has also produced the massive sale of shares in the Spanish solar sector with significant drops in Grenergy, Solarpack and Soltec in the continuous market.

Goldman Sachs cuts Solaria rally by lowering recommendation to neutral

“We think it is too early to move away from our current (more conservative) assumptions for future purchases, returns and capital structure,” says Goldman Sachs.

The investment bank estimates that the Spanish solar market could grow by 3 to 3.5 GW per year until 2030, while seeing an ongoing decline in Solaria’s domestic market share, from the current 30% to 20% in 2025-2030 and to 15% beyond 2030. In October, Solaria broke into the Ibex 35 replacing the ‘teleco’ MásMóvil.

Learn to invest in the short term

Investment Strategies launches the Practical Trading Program to invest at an Expert level. Learn to invest in the short term with our most complete program!

Among the ten analysts who cover Solaria, three analytics firms advise buying, three bet on holding and four recommend selling.

Citigroup sees potential in Siemens Gamesa

This Friday it was also known that the investment bank Citigroup has raised the target price for Siemens-Gamesa by 26.5% from 34 euros to 43 euros per share, which represents a potential of 11.75% in the IBEX 35.

Siemens Gamesa trades with increases this Friday of over 1% and accumulates a rise of 17.7% at the beginning of the year.

What will happen in 2021 on the stock market?

The Investment Strategies analysis department analyzes the annual outlook for 2021.

Year II of the Covid, what does the market expect? Don’t miss our special January Magazine on what the market expects for this year on the stock market.

Free webinars for subscribers , Own perspectives of the analysis department for 2021, Stronger and quality stocks to invest, learn to put a Stop in your portfolio, Premium indicators… all this much more free for our subscribers.

Subscribe to the Premium service of stock analysis of investment strategies and help us to keep improving. It’s time to support the services you regularly use for your investments.

Discover it here

Expectations in the real estate sector for 2021 – Latest News, Breaking News, Top News Headlines

The Government prepares convoys to transport vaccines, medicines and food before the arrival of severe frosts