Waga Energy SA: Promising Financial Outlook and Strategic Developments Justify Buy Rating

Stifel Nicolaus analyst Thomas Mordelle maintained a Buy rating on Waga Energy SA today and set a price target of €30.00.

Thomas Mordelle has given his Buy rating due to a combination of factors that highlight Waga Energy SA’s promising financial outlook and strategic developments. The company recently announced the successful monetization of a US Investment Tax Credit (ITC) for its Steuben project, which is a significant milestone. This project, equipped with a Wagabox unit, is capable of producing up to 60GWh/year of biomethane, and the ITC monetization represents a net amount of $3.8 million, covering 30% of the total investment.
Furthermore, Mordelle notes that Waga Energy’s CAPEX in the US is expected to be eligible for substantial ITC support, potentially amounting to €30 million until June 2028. Additionally, the acquisition of a majority stake in Waga Energy by EQT at a favorable price per share indicates strong investor confidence and potential for future growth. These factors collectively contribute to the positive outlook and justify the Buy rating.