Solaris Energy price target raised to $51 from $50 at Piper Sandler

Piper Sandler raised the firm’s price target on Solaris Energy (SEI) to $51 from $50 and keeps an Overweight rating on the shares. Despite sharing an exciting quarter, including the finalization of its JV with its major data center customer, an executed financing term sheet, upsizing the JV to 900MW from 500MW, extending the JV tenor to seven years from six, securing an additional 330MW to grow capacity to 1.7GW/1.25GW net from 1.4GW/1.15GW net, guiding Q2 above consensus, and raising its pro forma EBITDA guide to $575M-$600M from $475M-$500M, shares were only up 3%, well below expectations for a double-digit day, the firm says. The underperformance left Piper and investors confused, but digging into the details the firm points to attention on liquidity to fund near-term capex as the primary driver behind the weakness.