Energy S.p.a.: GBC Research initiates coverage with buy recommendation and target price of EUR 2.75 

Strong market position in the field of Battery Energy Storage Systems (BESS) on the Italian domestic market.
Internationalization offers considerable growth potential.
Analysts determine a fair enterprise value of EUR 2.75 per Energy share.  

Sant'Angelo di Piove di Sacco (Padua, Italien), April 18, 2024 – GBC Research has added Energy S.p.a. (ISIN IT0005500712, ticker ENY) to its coverage. Based on the detailed initial study, the analysts recommend buying the shares of the specialist for Battery Energy Storage Systems. The target price is EUR 2.75. The Energy share is currently trading at around EUR 1.35.

From the analysts' perspective, Energy is a beneficiary of the booming demand for renewable energies and the associated grid services. Energy is contributing to the green transformation in the European energy sector with fully integrated Battery Energy Storage Systems, which are often used in the context of renewable energies. Due to the boom in energy production from solar, wind and other sources, almost 44% of the Eurozone's energy mix is now covered by renewable sources (source: Ember think tank). This also increases the need for efficient storage systems.

The strong market position in the Italian domestic market provides a good basis for driving forward internationalization in the coming years. In GBC's view, this should also become the driver for Energy's sales and earnings growth in the coming years. After sales of EUR 63.33 million and EBITDA of EUR 10.12 million in 2023, the analysts expect significant increases in the coming years. In 2026, Energy is expected to generate sales of EUR 83.46 million and EBITDA of EUR 14.70 million. In addition to the export business with a focus on Europe, the expansion of the product portfolio to include large and extra-large Battery Energy Storage Systems (XL product line) should also contribute to growth.

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Energy S.p.A., founded in 2013 by Davide Tinazzi, Andrea Taffurelli and Massimiliano Ghirlanda and listed since 1 August 2022 on the Euronext Growth Milan market of the Italian Stock Exchange, is a company with operational headquarters in the province of Padua, Italy, and an industry leader in offering energy storage systems for both residential and large-scale applications. These systems allow energy to be stored and released according to customers' energy needs. To date, there are more than 60,000 systems sold by Energy and already installed in Italy, dedicated to the residential, commercial, industrial, utilities and electric mobility markets. As of 31 December 2023, revenues amounted to EUR 63.3 million and net profit to EUR 5.6 million. Among the most important projects realised are the large plant in Comiso, Sicily, consisting of an agri-voltaic plant and a photovoltaic field; the large plant dedicated to the CAAB in Bologna; Smart Grids at numerous municipalities in Sardinia and Lombardy; and a Condominium Energy Community in Switzerland where individual hubs exchange energy according to need. Energy's sales channels include both generalist distributors of electrical equipment and photovoltaic specialists, and the company also works with large European EPCs. The proximity of Energy's logistics to the headquarters of major distributors has led the company to have strong partnerships with Italian and European market players. The company purchases components from major international suppliers and combines them with proprietary software called 'ZeroCO2' into systems that comply with EU standards. https://www.energysynt.com/en  

Contacts

Company
Energy S.p.A.
Tel. +39 049 2701296
investor@energysynt.com

IR & Corporate Media Relations Advisors International
TWIN Srl
energy@twin.services

Mara Di Giorgio
Tel. +39 335 7737417

Federico Bagatella
Tel. +39 331 8007258

Chiara Bortolato
Tel. +39 347 8533894

Giorgia Fenaroli
Tel. +39 334 2208486