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.
“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.
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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.
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