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%
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Disclaimer
The user Bejgal has a position in ENXTPA:NEX. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. 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.
