Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
An announcement from Drax Group plc ( (GB:DRX) ) is now available.
Drax Group has signed a 15-year tolling agreement with Zenobē for 200MW (800MWh) of battery energy storage capacity at Coalburn in Scotland, giving Drax full operational control and dispatch rights without any upfront capital cost. Zenobē will build, maintain and ensure availability of the asset, while Drax pays a fixed annual fee and captures all market revenues excluding capacity market and certain ancillary payments.
The deal is expected to generate returns significantly above Drax’s weighted average cost of capital and fits its FlexGen strategy by adding short-duration, fast-response storage that complements its owned BESS assets and optimisation platform. Together with recent acquisitions and another tolling deal, Drax now has agreements covering 710MW of storage-related capacity, strengthening its role in UK energy security and decarbonisation while enhancing long-term cash generation for shareholders.
The most recent analyst rating on (GB:DRX) stock is a Sell with a £680.00 price target. To see the full list of analyst forecasts on Drax Group plc stock, see the GB:DRX Stock Forecast page.
Spark’s Take on GB:DRX Stock
According to Spark, TipRanks’ AI Analyst, GB:DRX is a Outperform.
Drax Group plc’s strong financial performance, particularly in cash generation and profitability, along with positive technical indicators and a favorable valuation, contribute significantly to its overall score. The company’s strategic initiatives, including share buybacks and government agreements, further bolster its market position. However, challenges in revenue growth and market dynamics in the pellet sector pose risks that need careful management.
To see Spark’s full report on GB:DRX stock, click here.
More about Drax Group plc
Drax Group plc is a UK-based energy company focused on flexible generation and decarbonisation, including biomass power, battery energy storage systems and grid support services. The group is developing a gigawatt-scale pipeline of storage and optimisation assets to support energy security and the transition to a low-carbon electricity system in the UK.
Average Trading Volume: 1,259,291
Technical Sentiment Signal: Buy
Current Market Cap: £2.96B
See more data about DRX stock on TipRanks’ Stock Analysis page.