Promising Growth Prospects for Elia System Operator SA/NV Amidst German Power Network Expansion

Alberto Gandolfi, an analyst from Goldman Sachs, has initiated a new Buy rating on Elia System Operator SA/NV (0NTU).

Alberto Gandolfi has given his Buy rating due to a combination of factors that highlight the promising prospects of Elia System Operator SA/NV. Firstly, Elia is positioned as a significant player in the anticipated capital expenditure surge within the German power network sector, showcasing the most rapid growth in regulated asset base among its peers. Additionally, the potential for increased earnings per share is bolstered by the possibility of favorable outcomes from upcoming regulatory reviews, which could lead to higher returns and a growing asset base.
Moreover, Elia’s financial strategy appears robust, with recent equity raises and plans for further asset disposals or hybrid instruments expected to meet funding requirements comfortably through 2028. Lastly, the company is strategically placed to benefit from Germany’s urgent need for power infrastructure investments, driven by an aging grid and the anticipated rise in power demand due to the country’s industrial resurgence.

In another report released on June 3, Barclays also reiterated a Buy rating on the stock with a €110.00 price target.