Analyst Harrison Williams of Morgan Stanley maintained a Buy rating on Elia System Operator SA/NV (0NTU – Research Report), with a price target of €120.00.
Harrison Williams has given his Buy rating due to a combination of factors that highlight Elia System Operator SA/NV’s strong growth potential and attractive valuation. The company is expected to achieve significant growth in its German and Belgian operations, with RAB CAGRs projected at 19% and 15% respectively by 2030, which is notably higher than the sub-sector average of 9%. This growth is anticipated to translate into an EPS CAGR of 13%, surpassing the sector average of 7%.
Despite these impressive growth metrics, Elia is currently trading at a 14% premium to its 2025 RAB, which is considerably lower than the peer average of 30%. This undervaluation presents a substantial opportunity for re-rating, with potential upside ranging from 30% to 50% if it aligns with the lower end of the peer-group valuation range. Consequently, Elia is positioned as a top pick in the electricity network sector, offering a promising investment opportunity with a price target of €120 per share, implying over 25% potential upside.
In another report released on April 24, Kepler Capital also initiated coverage with a Buy rating on the stock with a €120.00 price target.