MPC Energy Solutions (mpc-energysolutions.com) is a solar power company. Its IPO was launched two weeks ago. It is new in the market and therefore off radar for many investors. That creates an opportunity.
Scatec Solar trades at 6 times its book value. MPC trades at a bit above 1 times book value. According to the analysts MPC should trade at least 3 times book value. It means that the share price should be 120 NOK per share vs today´s 50 NOK.
What will drive the share price:
- Spare bank research publication – IPO was managed by Fearnley and SpareBank. The managers always publish research after the blackout period. Fearnley already published very bullish report titled “A First class Growth Vehicle is Born” their price target is 90. The research pushed the stock from 45 to 50. SpareBank has much higher retail coverage. A similar research would push the price up by 10 NOK. Their publication must be any day.
- Company news flow – the analysts expect strong newsflow on project progress over the next 60 month. An analyst told me he expects around ten news items during the period. IF MPC deliver as expected, its share price should double.