MPC Energy Solutions Gears Up for Growth in Renewable Energy Sector, According to NuWays AG Research

NuWays AG has initiated coverage on MPC Energy Solutions (MPCES) with a BUY recommendation and a target price of NOK 23.00. The report highlights MPCES's promising position in the renewable energy sector, specifically within Latin America and the Caribbean. These regions, despite a high overall renewable energy share, have certain countries lagging significantly behind in their renewable energy goals, presenting a substantial market opportunity for MPCES.

MPCES owns and operates an integrated portfolio of photovoltaic (PV) and combined heat and power (CHP) assets totaling 144 MW, with a further 336 MW in its development pipeline. Strong demand for renewable energy assets in MPCES's target regions is driven by high solar irradiation, attractive returns, and the necessity to meet net-zero targets. This puts MPCES in a favorable position to capitalize on the high demand for long-term power purchase agreements (PPAs) with both private and state-owned entities.

Following a strategic transition year marked by leadership changes and a sharpened focus on co-investments to improve equity IRRs, MPCES is poised for significant growth. NuWays AG projects a notable increase in MPCES's proportionate annual sales, bolstered by ongoing and future project executions, with expectations of achieving an EBIT margin exceeding 30% as these projects materialize.