Analysguiden: “We maintain our price target of SEK 25”
So writes Analysguiden, part of Aktiespararna, in a new analysis of Soltech Energy's share. In terms of the share's valuation, Analysguiden concludes that the Soltech share is still heavily undervalued and reasons that the market capitalization is far too low. They therefore repeat their previous price target of SEK 25 per share for the Soltech share.
The analysis also includes a market overview in which the Analysguiden particularly highlights Soltech's broadening towards two strategic areas. The first is the solar park area, where Soltech has signed an agreement with Norwegian Solgrid for potential order volumes of SEK 700-1000 million over the next few years, and potentially up to SEK 2 billion in total. The second area the analysts identify a little extra is the expertise in large-scale EV charging, where the subsidiary E-Mobility is leading the Group's investment in an area that is expected to grow significantly in the coming years.
However, the analysis comments that the margin improvement is delayed and indicates that the gross margin remains at 35%. 2023 is once again a challenging year, but management and all subsidiaries are working hard to improve margins on an ongoing basis.
In summary, Analysguiden states that they see a significant upside in the share and also presents a reasoning in which they report that they do not find anything substantial enough to even come close to explain the falling price trend and the low valuation.
Here you can read the full analysis (in Swedish): https://www.aktiespararna.se/analyser/soltech-energy-forskjutning-av-marginalmalet
