Catalysts
- Record backlog in High Voltage (€6.2B in 2024).
- Growth in global electrification (CAGR 7% until 2028).
- Leading position in high-voltage submarine cables.
- Investments in AI and copper recycling.
Assumptions
- Sustained demand in global electrification.
- Renewable energy development.
- Data center expansion.
- Transition to electric vehicles.
Risks
- Copper volatility (20% of costs).
- Exposure to Europe (65% revenue).
- Tighter margins than initially anticipated
Valuation
- EPS 2027: €10.00.
- Multiple PER: 15x. In line with sector (15x - 20x)
- Target Price 2027: €150.00.
- Implied CAGR from €94.75: 16.45%
How well do narratives help inform your perspective?
Disclaimer
The user Bejgal has a position in ENXTPA:NEX. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Read more narratives
WA
Consensus Narrative from 14 Analysts
Great Sea Interconnector And Copper Recycling Investments Propel Revenue And Margins
Key Takeaways Significant investment in copper recycling and electrification projects aligns with revenue growth and enhanced margins via new revenue streams and margin-focused growth. Large CapEx investments in high-demand cable production aim to boost profitability, supported by a robust project backlog ensuring future revenue and earnings stability.
View narrative€118.55
FV
10.3% undervalued intrinsic discount-1.54%
Revenue growth p.a.
1users have liked this narrative
0users have commented on this narrative
0users have followed this narrative
23 days ago author updated this narrative
