Update shared on 30 Nov 2025
Fair value Increased 0.51%Narrative Update on ACWA Power
Analysts have raised their price target for ACWA Power by SAR 1.00 to SAR 198.20, citing increasing profit margins, which offset slightly moderated revenue growth projections.
What's in the News
- ACWA Power's ArRass2 PV IPP project in the Qassim Region, Saudi Arabia, has received an Initial Commercial Operation Certificate for an additional 1,000 MW. This brings the total capacity to 2,000 MW. The financial impact is expected in the fourth quarter of 2025. (Key Developments)
- ACWA Power and Envision Energy have entered a seven-year framework agreement to collaborate on renewable energy projects in Saudi Arabia, Uzbekistan, China, and other regions. The agreement includes the establishment of local manufacturing and service infrastructure as part of Kingdom of Saudi Arabia Vision 2030. (Key Developments)
- Chariot Limited and ACWA Power signed a Memorandum of Understanding to explore the development of sustainable energy projects across southern Africa. The partnership will focus on renewable energy, battery storage, and gas-to-power assets in countries including South Africa, Botswana, Namibia, Mozambique, Zambia, and Tanzania. (Key Developments)
Valuation Changes
- Fair Value (Consensus Analyst Price Target): Increased slightly from SAR 197.20 to SAR 198.20.
- Discount Rate: Increased marginally from 19.86% to 19.97%.
- Revenue Growth: Decreased from 24.59% to 22.27%.
- Net Profit Margin: Improved, moving up from 30.78% to 32.32%.
- Future P/E: Increased from 62.68x to 64.94x.
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