“Both Enlight and EnergyX have fallen too much. I estimate that they will rise. Enlight has fallen because it is difficult to issue 250 million dollars without giving a discount to buyers, but Enlight has a huge portfolio that is under development. This is a good move and will be reflected in the future. Beyond the fact that it brings in money He is giving the pipeline forward. She will have to invest tens of billions of shekels in development in the future.” This is what Elad Kraus, director of Israel research at Meitav Brokerage, says in an interview with Bizportal. After Enlight issued on Wall Street at a discount to the price in the Israeli market and subsequently fell in the local market. “My recommendation for both is excess yield. Enlight with a target price of NIS 77, i.e. an upside of 19%, in Energyx the target price is NIS 14.4, an upside of 29%.”
What do you think is most important to look for in the financial statements of renewable energy companies?
Kraus: “The financial report is on the verge of being irrelevant. These are companies with very high growth. We need to see the rate of EBITDA, revenues and flow in the coming years. In the report that will be published in a month, we would like to see continued growth in 2024 and 2025, which the company confirms and raises the forecasts its for these years. The revenue and profit is history and is a small part of the portfolio. I would like to see Enlight and Energix meet the forecasts and even increase the forecasts. This figure is perhaps the most significant.”
What does continued consistency mean to you?
“Continuing consistency is that the projects should continue to be chained together. A significant change for better or worse is a change in forecasts of more than 100 million up or down. Small changes of 20-50 million may be due to exchange rates and it will not be significant, but if we see This high forecast update will affect prices.”
This brings us back to Energix, the company issued a profit warning following the new price cap in Poland. How does it affect?
“Following the regulation in Poland, Energix lowered its forecasts for 2023. It went down, but in my eyes both were ‘hijacked’ too much. Both Energix and Enlight, therefore both, but especially Enlight, are an investment opportunity, here is a company that is expected to grow at a fairly significant rate in the years the following”.
How problematic is the regulation?
“As mentioned, Energix reduced its profit forecast for 2023 as a result. So yes, this regulation is definitely a very important point in the field of renewable energy. The more stringent the regulation, the more it may hurt the companies, but at the moment the prices are very high – also in Sweden, as well Spain and more. Today’s prices are far beyond what Enlight thought when it started its projects.
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