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Goldman Sachs reinstated coverage on Elia Group SA (ELI:BB) Monday with a buy rating and set a price target of EUR115.00. The investment bank cited the Belgian electricity transmission system operator’s potential to benefit from upcoming infrastructure investments in Germany.
Goldman Sachs highlighted Elia as a key opportunity to capitalize on the expected capital expenditure super-cycle in German power networks. The firm projects Elia will achieve the fastest regulated asset base growth in its coverage universe, with a 17% compound annual growth rate from 2025 to 2029.
The bank noted that markets appear to be overlooking potential upside from upcoming regulatory reviews. Higher returns combined with Elia’s growing asset base should translate into high-teens earnings-per-share growth through the end of the decade, according to the research note.
Goldman Sachs expressed confidence that Elia’s funding needs until December 2028 will be adequately addressed through its recent equity raise, combined with planned additional disposals or hybrid securities. These measures should fully cover the company’s capital requirements for the next several years.
The investment firm emphasized Elia’s direct exposure to Germany, describing it as a region with growing need for power infrastructure investments due to an aging power grid and likely increases in power demand driven by Germany’s re-industrialization plans.
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