Public Power Corp (PPC GA) Greece
Utilities
My Big Fat Greek Deal - ResearchGreece downgrades their rating to DO NOT OWN IT (DOI) on the back of the €2bn/2GW solar agreement with Mytilineos. Why? Because the implied cost does not make sense; it is much higher than PPC’s own installations or projects under development; it is higher than any of the recent solar projects they have seen; PPC does not need it and it does not maximise shareholder value. While ResearchGreece’s valuation yields a fair value >€15 per share (+40% upside), their conviction is lower than before the deal. Investors that do not mind uneconomic corporate decisions may find such an upside attractive.
Edition: 184
- 19 April, 2024
Public Power Corp (PPC GA) Greece
Utilities
Announces the acquisition of Enel's assets in Romania for a total EV of €1.9bn - ResearchGreece likes the transaction because a) it was completed at a 50% discount to recent RES deals in Greece, namely Motor Oil’s €2.0m/MW or 12x EBITDA acquisition of Ellaktor wind assets; and b) it is evidence PPC is delivering on its business plan targets as laid out in 2021. ResearchGreece expects the same to follow with Greek RES targets (+5GW by 2026). TP €12.8 (60% upside).
Edition: 156
- 17 March, 2023