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What to do with the titles of Innergex, Nvidia and Bombardier? Here are some analyst recommendations likely to move prices soon. Note: the author may have a completely different opinion than that expressed by the analysts.
The Chilean sun makes analysts smile
The good news continues for Innergex. After signing last week a 30-year electricity purchase contract with Hydro-Québec, in partnership with the Innu Council of Pessamit, on the North Shore, the Quebec renewable energy producer announced Tuesday the commissioning of a battery energy storage installation in Chile.
This project, called San Andrés, allows excess solar energy to be stored during the day and then distributed in the evening and early in the morning to capture peak market prices, explains Innergex. “This allows the facility to avoid congestion during the day, support the network during peak demand and optimize project returns.”
Located in the north of the country, in the Atacama Desert, San Andrés adds to its already existing installation of solar panels. With a capacity of 35 MW, it should generate annual revenues between 8.2 and 10.9 million Canadian dollars ($M).
The fact that the project was carried out below the initial budget was widely highlighted by the markets.
With its Salvador photovoltaic solar park, also located in the Atacama Desert, “the company’s forecast for earnings before interest, taxes, depreciation and amortization is now between $17.9 million and $20.6 million, or beyond of our forecasts for the two projects which were $17M,” underline analysts Brent Stadler and Brendan Chandra of Desjardins.
“It is positive to see that Innergex was able to carry out this project below the planned budgets. The financial details of the company’s projects in Chile are better than we expected.” For this reason, Desjardins maintains its purchase recommendation for the stock and sets its 12-month target share price at $13.
Dominique Talbot
