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Tuesday, Northland analysts initiated coverage on Solaris Energy Infrastructure (NYSE:SEI) with an Outperform rating and set a price target of $37.00 per share, representing a significant upside from the current price of $18.47. According to InvestingPro data, analyst targets for SEI range from $36 to $53, with the company valued at $1.25 billion by market capitalization. Solaris Energy Infrastructure, known for its mobile natural gas power generation capabilities, is leveraging its 360 MW modular turbine fleet, which is expected to expand significantly to 1,400 MW by the first half of 2027.
The growth of Solaris Energy’s fleet is driven by the increasing power demands from AI data centers. As these data centers face the challenges of an aging power grid, the need for reliable off-grid power solutions has become critical. Solaris Energy’s services are increasingly vital as AI data centers cannot afford delays due to grid connectivity issues or power disruptions.
Northland’s analysts highlighted the significant market opportunity for Solaris Energy Infrastructure in providing these essential services. The company’s ability to meet the growing and complex power requirements of AI data centers positions it well in the market.
The analysts’ positive outlook on Solaris Energy Infrastructure is based on the company’s strategic response to the evolving energy needs of technology-driven facilities. With the anticipated growth of its turbine fleet, Solaris Energy is preparing to meet the surging demand for stable power solutions in the tech sector.
The Outperform rating and the $37.00 price target reflect Northland’s confidence in Solaris Energy Infrastructure’s potential to capitalize on the expanding market for off-grid energy solutions, particularly for AI data centers that require consistent and reliable power sources to operate effectively.
In other recent news, Solaris Energy Infrastructure has been at the center of various developments that could impact its investors. Notably, Stifel analysts have maintained a Buy rating on Solaris Energy, setting a price target of $48.00, citing the company’s growth potential in the Power Generation (HM:PGV) sector and a stabilizing long-term contract with a major data center provider. However, Solaris faced scrutiny after a critical report from Morpheus Research questioned its business model and management, following its acquisition of Mobile Energy Rentals LLC. Despite this, Piper Sandler raised its price target for Solaris Energy to $50.00, influenced by recent expansion efforts and new contract developments, including a significant 500MW six-year data center contract.
The company has been working on expanding its fleet size and securing multi-year contracts, which Piper Sandler sees as a positive shift towards more permanent power solutions. Stifel’s analysis also highlighted Solaris’s acquisition of assets from Caterpillar (NYSE:CAT)’s Solar division, viewing them as high-quality, low-emission turbines. The firm’s confidence in Solaris’s management and strategic decisions remains strong, despite market volatility. Solaris’s recent achievements and strategic contracts are seen as key factors in its projected growth, even as it navigates challenges highlighted by the short report.
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