Aug 3, 2011 - Several brokers revised up their 2011 forecasts for Enel Green Power (BIT:EGPW) and kept the positive ratings on the stock, following the company's first-half results release and confirmed 2011 guidance.
Enel's (BIT:ENEL) renewable energy company reported Tuesday a net profit of EUR 300 million (USD 429.4m) for the first half of 2011, up by 18.6% on the year, beating analyst forecasts. The earnings before interest, tax, depreciation and amortisation (EBITDA) surged 34.9% to EUR 878 million and earnings before interest and tax (EBIT) soared 46.3% to EUR 607 million.
The figures, although influenced by extraordinary factors, were very good and widely beat the forecasts of both brokerage Intermonte and the analyst consensus, Intermonte said. The broker, which kept its "outperform" rating on Enel Green Power, raised its EBITDA forecast for 2011 to EUR 1.58 billion from EUR 1.48 billion.
Enel Green Power's management confirmed at yesterday's conference call the EBITDA target of EUR 1.4 billion for 2011. Both Equita and Mediobanca consider that the company will post higher EBITDA this year. Equita has a "hold" rating with a price target of EUR 2.00.
Enel Green Power's debt is expected at EUR 4.1 billion at the end of 2011, but the company forecasts a possible rise in capital expenditure (capex) in the second half due to earlier start of the 2012 pipeline.
Banca IMI has not revised up its estimates yet but continues to advise investment in the stock, keeping an "add" rating. Mediobanca has "outperform" and JP Morgan Cazenove advises "overweight". Bank of America Merrill Lynch, in turn, affirmed its "buy" rating and EUR 1.95 share price target. The US bank believes that the recent drop of the market price, linked to fears over Italy's sovereign debt, is a good opportunity to buy the stocks.
Enel Green Power had gained 1.30% to EUR 1.71 at 1552 CET on the Milan market on Wednesday.
(EUR 1 = USD 1.431)
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