European Utilities & Clean Energy: Transfer of coverage

研报英文原文证据摘录

European Utilities & Clean Energy: Transfer of coverage

rn is above or below

our cost of capital assumption. Upside risks for Enagas are a decline in Spanish nominal bond yields and further softening of the second regulatory

proposal.

Grenergy Renovables (GRE SQ / GREG.MC)

Valuation Methodology: The renewable energies division dominates our sum-of-the-parts valuation for Grenergy. We value renewable power

generation assets at standard EV/MW ratios derived from a DCF methodology. We use a blended WACC of ~5.6% (Grenergy receives USD revenue from

its Chilean hybrid platform businesses linked to US inflation).

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: Downside risks to our price target include lower

achieved power prices or plant load factors than initially forecast as well as delays to capacity growth across Chile and Europe. We highlight that the

stock is also sensitive to interest rate / WACC movement, which means its share price is going to fluctuate with macro in both directions.

Italgas (IG IM / IG.MI)

Valuation Methodology: We estimate the Regulated Asset Base at the end of the year. We calculate the NPV of the WACC outperformance comparing

the allowed return and our WACC calculation. We estimate the value of financial investments by using Price/Book multiples. We use a WACC of ~4.7%.

We think Italgas gas already discounts good growth expectations through network upgrades and synergies from the recent acquisition of 2i Rete gas.

The main negative for Italgas is uncertainty and potential for delays in the Italian tender process for gas concessions.

Risks which May Impede the Achievement of the Barclays Research Valuation and Price Target: The risk to our fair valuation of Italgas is volatility