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bears loosen due to their good prospects

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Solaria: the bears loosen due to their good prospects

Solarium recovered since last February 24the sad date of the Russian invasion of Ukraine and 49%. It the example, with very large volumes traded daily, and it must also be said in the midst of great volatility inherent in the market, of how renewable energies are turning green in the face of what seems to be an acceleration towards that sustainable transition by the Union Europe.

Heavy reliance on Russian oil and gas will be turned around to avoid as soon as it can be done, with highly intensive investments in green energy that will undoubtedly revert to values ​​such as Solariawhat the market is already reading de facto.

So on its stock chart we see cHow the value rises no less than 41% in the last 20 trading sessions, almost without significant breaks, and despite the two cuts this week, accumulated six consecutive sessions on the rise with gains of 26.6%. A spectacular baggage, without a doubt the best of the Ibex, con advances of 39% in the last month, of 22.4% in the quarter and annual increases that are cut, due to those two falls to 13%.

Solaria annual value quote

Solaria annual value quote

One of the first effects is the reduction of the bearish presence by Millenium Capital up to 0.66% and ODEY AM up to 1.59%, with Helikon, the British fund, which has reached 0.70% of short positions on its capital since December. A total of 2.95%.

Paraca the fundamental analyst of Investment Strategies María Mira, In a study of the energy market, it stands out that “Solaria has difficulties meeting deadlines because it has a high leverage and it is true that these days it has announced a financing agreement for a new project, but that until now it was being heavily penalized because because .

He highlights that “investors were already discounting it, in my opinion very correctly, an excessive leverage compared to the rest at a time when, although we do believe that the impact of the conflict in Ukraine will weigh on GDP”.

“And, if we believe that the rate hike is inevitable, that in the end they are going to have to be raised and it may take a few more quarters, but in the end we are going to have to lower inflation. Therefore, all companies that are indebted the market despite the volatility of these days in my opinion they have to penalize the less healthy as is the case with Solaria” Ei’s fundamental expert adds.”

Regarding its multiples, María Mira highlights that “at a valuation by multiples under EPS forecast 2022 of €0.55/share, the share improves its comparison against a competitive, but it’s not cheap.

Solaria Fundamental Value Analysis

Solaria fundamental value analysis

In addition, affirms the fundamental expert of Eique “the market discounts a PER of 30.35v, compared to an average sector ratio of 17.9v, Although the PER was adjusted to estimate EPS growth, the PEG multiple for Solaria shows a relative undervaluation and stands at 0.43v. The EV/EBITDA moderates compared to historical levels and is now around 20.9v; Also expensive by book value, the market pays more than 6.4v for its estimated 2022 book value, adjusted against a sector average of 2.4v. meBased on our fundamental assessment, the recommendation is neutral or hold if it is in the portfolio”.

And from a technical point of view, the independent analyst Néstor Borrás highlights that Solaria “as a sign of strength, manages to form a large bullish encircling pattern in the identified support area of ​​13.45 / 13.06 euros per share, with an upturn in trading volume. Achieve vulnerable the resistance zone around 18,825 / 17.99 euros per shareending the consolidation process, after breaking a large range laterally projected from MAR 2021”.

Solaria on daily chart with Average amplitude range in percent, MACD oscillator and trading volume

Solaria technical analysis of the value

Solaria value technical analysis

In addition, the technical indicators of Investment Strategies show us that Solaria, in rebound mode, improves by two points and Reach 4.5 total score out of 10 possible for value. With a downward trend in the long term, but bullish in the medium term, with total negative moment, both slow and fast. Meanwhile, the volume of business is growing in the medium and long term and its volatility is mixed: it is decreasing in the long term and increasing in the medium term.

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