A Look at Solaris Energy Infrastructure’s (SEI) Valuation Following Class Action Lawsuit Over Acquisition Disclosures

Solaris Energy Infrastructure (NYSE:SEI) is facing a new class action lawsuit, with shareholders alleging that the company misrepresented key details around its acquisition of Mobile Energy Rentals LLC. The complaint suggests these disclosures may have affected the perceived value of the deal. This situation raises fresh questions for investors about the company’s transparency and potential regulatory hurdles ahead.

See our latest analysis for Solaris Energy Infrastructure.

The latest legal challenge comes on the heels of a particularly volatile period for Solaris Energy Infrastructure’s share price. While there was a sharp pullback in the past month, momentum has been building overall, with the stock notching a 51.6% 90-day share price return and an impressive 97.8% total shareholder return over the past year. This backdrop of strong long-term gains, despite the recent headline risk, suggests investors remain optimistic about the company’s growth potential and operational performance.

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With analysts forecasting a sizable upside from current levels, the real question now becomes whether Solaris Energy Infrastructure’s recent risk is creating a buying opportunity or if the market has already priced in all the future growth.

Most Popular Narrative: 25.4% Undervalued

Solaris Energy Infrastructure’s prevailing narrative places fair value at $64.22, well above the last close of $47.89, inviting renewed interest as analysts see room for further gains.

The accelerating demand for grid resiliency, electrification of industries, and AI-driven data center power needs is creating strong, ongoing demand for Solaris's modular, scalable power generation solutions. This positions the company for significant revenue growth as delivery of new capacity ramps through 2026 and beyond.

Read the complete narrative.

What’s fueling this bullish outlook? Hint: the narrative leans heavily on game-changing growth in revenue, profits, and earnings multiples normally reserved for market disruptors. Curious what bold forecasts are driving this ambitious valuation? Dive in to unearth the key financial leaps analysts believe Solaris can make.

Result: Fair Value of $64.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution setbacks or a pause in new contract wins could quickly temper recent optimism around Solaris Energy Infrastructure’s bullish outlook.

Find out about the key risks to this Solaris Energy Infrastructure narrative.

Another View: Looking Through the Lens of Earnings Multiples

While fair value estimates suggest Solaris Energy Infrastructure is undervalued, a review of its earnings multiple tells a different story. The company currently trades at 64.3 times earnings, which is considerably higher than both the US Energy Services industry average of 17.1x and its peer group’s 25x. The fair ratio points to 23.8x, indicating that investors may be stretching expectations if results falter or sector sentiment shifts. Could this premium be a sign of overheating, or is it justified by the growth narrative?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Solaris Energy Infrastructure Narrative

If you see things differently or trust your own analysis, you can test your perspective and craft a unique story in just a few minutes. Do it your way

A great starting point for your Solaris Energy Infrastructure research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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