We are long MPC ENERGY

From Fearnley Research published today:

MPC Energy Solutions (Buy, TP NOK 90/sh)

• A First-Class Growth Vehicle is Born

We initiate coverage of MPC Energy Solutions (ticker MPCES) with a NOK 90/sh Target Price and a Buy recommendation. MPCES comes across as a highly appealing way of playing the Renewables space, citing 1) an initial portfolio with FSest IRRs >15%, 2) growth opportunities beyond of c. 1 GW with similar economics, 3) scalable business model with applicability beyond targeted regions, and 4) attractive pricing. On the latter, the current market cap implies a price of FSest c. USD 0.8m/MW, representing a +50% discount to peers. Once projects are up and running and the company proves the business model, this sets the stage for meaningful repricing, especially considering the comparably high visibility on growth. Buy