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Investing.com - Morgan Stanley downgraded Solaria Energia y Medio Ambiente SA (BME:SLR) from Equalweight to Underweight on Monday, while simultaneously raising its price target to EUR13.00 from EUR10.00.
The investment bank acknowledged Solaria’s "promising first transformation steps" in its business mix pivot but cautioned that much of the anticipated value from this transformation appears already incorporated into the current share price.
Morgan Stanley’s analysis suggests that even when valuing Solaria’s year-end 2026 installed solar capacities at EUR0.8 million per megawatt—consistent with recent Spanish solar merger and acquisition activity—the current stock price already factors in several significant unsecured growth developments.
These priced-in developments include 0.7 gigawatts of future wind and solar additions, 1.2 gigawatts of batteries deployment, and 0.5 gigawatts in data center deals, according to the investment firm.
While Morgan Stanley concedes that long-term success remains possible for Solaria, it argues that the market has "priced in too much too soon," resulting in limited room for execution errors and a narrow cushion against future risks.
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