
EDISON keeps the target price of Mytilineos share high. The international financial house values the listed group at 24 euros / share, ie 57% above the current price of its share. It even states that it comes to this conclusion following a 10-year calculation of cash flows, with the result that the aforementioned valuation reflects the growth prospects of Mytilineos in the context of the energy transition.
EDISON analysts, in addition to their forecast for the expected significant increase in profitability in the last four months of 2021 and its doubling in 2022, compared to 2020, focus on further enhancing Mytilineos profitability in the next decade, focusing on the “Green Growth”.
As mentioned, Mytilineos, due to its strong financial position, aims to reduce emissions more than any other aluminum producer in the world. This reduction is estimated to be achieved both through the increase of recycled aluminum but mainly from the use of electricity, derived from Renewable Energy Sources, for the production of aluminum.
Therefore, EDISON claims that the entire aluminum production of the company, from 2025, will meet the conditions to be included in the list of selected companies which, for S&P Global Platts, are considered “low emission companies” carbon “and therefore will be able to reap much higher prices for aluminum.
Finally, analysts point out that the financial adequacy of Mytilineos, due to the enhanced operating cash flows of recent years in combination with existing lending lines totaling 1.4 billion give the company the opportunity and flexibility to be able to control the pace of implementation of its investment plans, with the priority at this time being in the part of rapidly growing renewable energy sources. The fact that the company maintains the advantage at all times, to utilize the RES projects in the portfolio of the RSD Sector and the funds from these sales to be reinvested in the RES portfolio of the company could strengthen this.
Therefore, EDISON’s analysis concludes that Mytilineos’ “Green Go” is fully funded and will play a key role in further increasing the company’s profitability in the coming years.


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