Edison – New target price for Mytilineos

Edison raises the target price for MYTILINEOS by 85%, with the new price being set at 24 euros from 13 euros previously, with the upside now at ~ 50%.

The analyst’s forecast for a surge in net profits, by > 100% in 2022 and > 125% in 2023, relies heavily on the company’s energy transition (green energy, circular economy and sustainability), proving that MYTILINEOS can lead, also in this area, not only domestic but also international competition.

The company’s first in Greece in terms of ESG criteria (environmental, social and governance criteria) was also characterized as important for profitability.

The result of the above is the forecast of EDISON for particularly attractive P / E indicators for MYTILINEOS, which for 2022 is estimated at ~ 8x, compared to the average of the competition that currently stands at ~ 17x

EDISON analysts predict that MYTILINEOS will be able to quadruple earnings before interest, depreciation & taxes (EBITDA) related to the energy transition, from ~ € 80m in 2020 (ie 25% of the total – € 315m- EBITDA of the company ) to ~ € 325m in 2025 (60% of the total – ~ € 540m- estimated EBITDA of the company).

The main pillars for the energy transition of MYTILINEOS remain:

RES, with EDISON looking forward to the completion of the 1.5GW photovoltaic investment in Greece with the parallel maturation of 4.3GW of the company’s global BOT portfolio
the “greening” of the primary aluminum and the simultaneous reduction of its production costs through RES, after the expiration of the last contract with PPC and
doubling the production of recycled aluminum (secondary smelting), which requires only 5% of the energy of the primary smelting.