Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 18 Apr, 24 | AY | Buy | USD 18.44 | USD 20.66 | USD 21.76 | 6 days | 18.0% |
Data Powered by EOD Historical Data (“EODHD”).
Atlantica Sustainable Infrastructure plc owns, manages, and invests in renewable energy, storage, natural gas and heat, electric transmission lines, and water assets in North America, South America, Europe, the Middle East, and Africa. The company was formerly known as Atlantica Yield plc and changed its name to Atlantica Sustainable Infrastructure plc in May 2020. Atlantica Sustainable Infrastructure plc was incorporated in 2013 and is based in Brentford, the United Kingdom.
Improved Returns to Shareholders: ROE of 2.9% in FY23 vs. negative 0.3% in FY22
Higher Gross Profitability: Gross Margin of 22.3% in FY23 vs. Industry median of 20%
Decreased Short-term Liquidity: Current ratio of 1.62x in FY23 vs. 1.99x in FY22
Leveraged Balance Sheet: Debt/Equity ratio of 3.80x in FY23 vs. Industry median of 2.46x
Regulatory Risks, Market and Price Risks, Operational Risks, and macro uncertainties etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 18.44 | 16.96 | 20.66 | 21.76 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: Adjusted EBITDA stood at USD 794.9 mn, up 1.7% during FY 2023. The company reported net profit of USD 43.4 mn in FY23 vs net loss of USD 5.4 mn in prior period.
Technical: The stock has corrected by 10.71% in the past three months and has also corrected by around 21.40% in the past nine months.
Outlook: AY expects adjusted EBITDA to range between USD 800 mn and USD 850 mn, with cash available for distribution to be between USD 220 mn and USD 270 mn in FY 2024.
Given the aforementioned factors, a "Buy" recommendations has been assigned on the stock at closing market price of USD 18.44, as on 10 April 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Utilities Industry: Utilities - Renewable
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AY Atlantica Sustainable Infrastructure PLC |
- -% | 21.97 | 54.17 | 37.88 | 1.92 | 1.49 | 6.50 | 8.86 |
| CEG Constellation Energy Corp |
-21.71 7.77% | 257.68 | 30.75 | 25.77 | 2.42 | 5.53 | 2.78 | 14.56 |
| OEZVF VERBUND AG |
- -% | 76.20 | 10.61 | 13.37 | 2.57 | 3.03 | 2.51 | 6.50 |
| OEZVY Verbund AG ADR |
- -% | 15.08 | 10.72 | 13.53 | 2.57 | 3.06 | 2.51 | 6.50 |
| DNNGY Orsted A/S ADR |
0.32 1.46% | 22.24 | - | 25.91 | 0.23 | 2.02 | 0.31 | -8.6553 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 10, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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