Update shared on 14 Dec 2025
Analysts have modestly raised their price target on ACWA Power to SAR 280.00, citing slightly higher expectations for revenue growth and profit margins, along with a marginally lower future price to earnings multiple that together support a stable fair value outlook.
What's in the News
- ACWA Power received an Initial Commercial Operation Certificate for an additional 1,000 MW at the ArRass2 PV IPP in Qassim, Saudi Arabia, bringing total project capacity to 2,000 MW, with financial impact expected in the fourth quarter of 2025 (company announcement).
- Envision Energy signed a seven year framework agreement with ACWA Power to supply wind turbines, provide technology cooperation, and deliver operations and maintenance services for upcoming renewable projects in Saudi Arabia, Uzbekistan, and Central and Eastern Asia (company announcement).
- As part of Vision 2030 localization goals, Envision and its joint venture partner will establish local manufacturing and service infrastructure for key wind turbine components in Saudi Arabia, while developing tower and blade manufacturing capacity and service solutions in Uzbekistan (company announcement).
- ACWA Power and Chariot Limited signed a memorandum of understanding to explore a southern African sustainable energy business focused on renewables, battery storage, and gas to power assets serving national grids and corporate offtakers in markets including South Africa, Botswana, Namibia, Mozambique, Zambia, and Tanzania (company announcement).
- The ACWA Power Chariot partnership aims to leverage both companies' technical and financing expertise to build a scalable portfolio of energy projects, with work underway to move from the MoU stage to binding agreements, although no definitive deal is guaranteed yet (company announcement).
Valuation Changes
- Fair Value: Unchanged at SAR 280.0 per share, indicating a stable central valuation view.
- Discount Rate: Risen slightly from 19.79 percent to 19.88 percent, reflecting a marginal increase in the perceived risk or required return.
- Revenue Growth: Increased modestly from about 24.0 percent to 25.6 percent, signaling slightly stronger top line expectations.
- Net Profit Margin: Risen slightly from roughly 32.4 percent to 33.9 percent, implying improved profitability assumptions.
- Future P/E: Fallen modestly from about 84.4 times to 80.6 times, suggesting a lower multiple applied to future earnings despite higher growth and margin forecasts.
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