Solaria shares have lost 44 percent from the highs that reached 30.94 euros in January, a trend that has made the company the second worst value on the IBEX 35.
The fear of the bursting of the renewable bubble or the lack of long-term visibility of the company itself discouraged investors.
Before the summer, Solaria was already the worst value on the Spanish stock market and after the holidays, investment banks of a lot of weight, such as Goldman Sachs, were even more pessimistic with the company.
Simple profit collection
Despite this uneven stock market trajectory, “nothing has gone wrong for Solaria,” he said. Victor Peiro, director of analysis of GVC Gaesco Values, in the podcast of closing of markets of Finanzas.com.
In fact, in this broker they have a valuation of 30 euros, “twice what it is worth right now,” explained this expert.
What has happened, in the opinion of this expert, is that Solaria multiplied its price on the stock market last year. For this reason, what “we are seeing is simply a profit taking”, he clarified Peiro.
The government’s mixed messages with renewables
When looking for excuses, “it is true that this year there has been a lot of noise with renewable energies, because we have a government that is sending totally contradictory messages,” lamented the director of analysis of GVC Gaesco Values.
On the one hand, “they are saying that all electrical energy has to be renewable in a few years, and on the other, that they are going to put more taxes, because since they do not consume CO2 and do not consume gas, they have to pay them, which is totally illogical, “he lamented Peiro.
However, the analyst considered that there is no risk of the burst of the bubble in renewable energy, precisely because there is no going back.
“They are the only way out to stop depending on Russia or the Middle Eastern countries in terms of raw materials, in addition to being the only way to reduce carbon dioxide emissions,” said the same source.
The fear of the renewable puncture has made a lot of noise, as has all the talk about the increase in the costs of raw materials for renewable energy companies.
“It is quite temporary, because photovoltaic materials are not very rare. It is true that there are bottlenecks, but technological progress will continue to put downward pressure on costs, “he said. Victor Peiro.
It is true that there are bottlenecks, but technological progress will continue to put downward pressure on costs, the expert considered.
The administrative plug generated by politicians
In addition, there is another factor that has affected Solaria and that “has served to reap benefits,” said Peiro. It is the subject of delays in the start-up of some solar parks.
It is “an issue that is affecting the entire industry and is also the direct responsibility of politicians.”
“As they have been on leave due to the Covid-19 issue, they have not processed all the permits that the companies are pursuing, with which” we are finding companies that have the money, the land and the materials but only need the permission of a city council to put these projects in motion “, he explained Peiro.
Support on the bullish guideline
After the falls of the last months, the price of Solaria sought support in the bullish guideline from the lows of 2016, which forms a support zone at 13.2 euros, he said Eduardo Faus, Income 4 Bank analyst.
Above, the main resistance is in the area of 18 euros, the overcoming of which would activate “interesting buy signals”.
By fundamentals, the consensus of analysts at Finanzas.com calculates a 12-month target price for Solaria of 19.43 euros per share.