Bernstein analyst Nikhil Nigania maintained a Buy rating on ReNew Energy Global (RNW – Research Report) on May 9 and set a price target of $8.80.
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Nikhil Nigania has given his Buy rating due to a combination of factors that highlight ReNew Energy Global’s strategic positioning and growth potential. The company stands as a leading renewable energy developer with approximately 11 GW of operational capacity as of December 2024, and it ranks among the top five solar PV manufacturers in India. This strong market position is further bolstered by a recent successful fundraising effort for its solar manufacturing business, which was valued at around $1 billion, indicating a robust valuation for its generation business and a healthy cash reserve.
Furthermore, despite the stock not having reached its full potential in the past, the possibility of taking the company private and listing it in India is now more feasible, which could unlock additional value. While the initial offer price of $7.07 per share may not see a significant increase, the company’s strategic moves, such as the expansion of its solar manufacturing capacity, align with industry trends and suggest a promising outlook. Nigania’s confidence in the take-private deal proceeding, along with ReNew’s competitive positioning relative to its peers, supports the Buy recommendation.