SEI: Doubling Power Capacity Will Drive Market Upside This Year

Analysts have raised their average price target for Solaris Energy Infrastructure from $55.89 to $62.00. They cite increased profit margin forecasts, a lower discount rate, and recent expansions in the company’s power capacity as key factors supporting the higher valuation.

Analyst Commentary

• Bullish analysts are raising their price targets significantly, reflecting confidence in Solaris Energy's fundamentals and future growth trajectory.
• The company’s recent expansion has doubled its power capacity. This is seen as a key catalyst for revenue growth and an improved market position.
• Improved financial flexibility, resulting from a successful $650 million convertible offering, leaves Solaris with ample capital to fund further projects and pursue strategic opportunities.
• Higher valuation multiples are being applied to forward earnings. This is supported by forecasts of increased adjusted EBITDA and robust execution on infrastructure development.

• Some caution remains after the stock’s recent 50% rally. There are concerns that the rapid share price appreciation may have partially priced in near-term upside.
• The enlarged capital base, while providing flexibility, also increases expectations for management to deliver sustained, profitable growth and efficiently deploy resources.
• Valuation risk persists if projected profit margins and expansion plans fail to materialize as expected. This is especially relevant given the heightened multiples now being applied.

What's in the News

• Amanda Brock has been appointed Co-Chief Executive Officer of Solaris Energy Infrastructure, effective October 16, 2025. She will serve alongside Bill Zartler, who remains Chairman and Co-CEO. Ms. Brock also joins the Board, filling a vacancy created earlier this year (Key Developments).
• Solaris Energy Infrastructure completed a follow-on equity offering and raised $79.2 million through 1,800,000 shares of Class A Common Stock at a price of $44 per share (Key Developments).
• The company has identified an opportunity to purchase approximately 80 MW of turbine capacity. Combined with on-order inventory due in late 2026, this will boost total available turbine capacity to nearly 500 MW (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has increased from $55.89 to $62.00. This reflects a moderate upward revision in the stock’s estimated fair value.
• Discount Rate has decreased from 7.69% to 7.26%. This results in a more favorable valuation environment for future cash flows.
• Revenue Growth projections have fallen significantly, dropping from 28.94% to 21.00%.
• Net Profit Margin forecast has risen from 14.99% to 20.17%, indicating expectations for stronger profitability.
• Future P/E ratio has decreased from 26.24x to 21.06x, suggesting an improved earnings outlook relative to share price.