New analyst criticism pushes Encavis to March level

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FRANKFURT (dpa-AFX) – Another downbeat comment from analysts accelerated the recent fall in Encavis shares on Thursday. After a drop of more than four percent the day before, the securities of the operator of solar and wind farms fell another eight and a half percent to 16.40 euros Thursday at noon. Equities thus fell back to the level of mid-March.

The price slump also pushed shares of Encavis into last place on the MDax. At the same time, the mid-cap index lost around 2%.

Thursday, the investment bank Stifel had downgraded the Encavis action to “Hold”. It therefore assumes that stocks will only have a total return of between minus five percent and plus ten percent over a twelve-month period. This is calculated from a combination of the evolution of the share price and the dividend yield.

According to Stifel analyst Martin Tessier, recently published company statements indicate that the pipeline of projects should be reduced by around a third on top of known delays. The expert favors a wait-and-see approach on Encavis’ actions before the unveiling of the next strategic plan. It currently sees little potential for an increase in the 2025 capacity target.

On Wednesday, analyst Dominic Nash of British investment bank Barclays had already expressed skepticism, weighing on Encavis’ share price. The expert expects 2023 to be a good year for broad-based energy companies. For companies focused on the renewable energy sector, however, he takes a more cautious stance in some cases due to high valuations. Encavis securities, for example, are currently experiencing a general increase in valuation ratios, he said.

Graphically, the picture has darkened considerably over the week. For example, on Wednesday, stocks have already fallen below the 21-day average line, which describes the short-term trend. In the medium and long term, the trends have been downward since mid-December./la/ajx/jha/

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