SolarBank stock initiated with Buy rating at D. Boral Capital

Investing.com - SolarBank Corp. (NASDAQ:SUUN), currently trading at $1.50 with a market capitalization of $53 million, received a Buy rating from D. Boral (OTC:BOALY) Capital on Tuesday, with the firm setting a price target of $4.00 in its initial coverage of the clean energy company. According to InvestingPro data, analysts’ targets range from $4.75 to $6.00, suggesting significant upside potential despite recent market volatility.

D. Boral Capital highlighted SolarBank’s transition from an engineering and construction model to one that incorporates asset ownership, which should enable recurring revenue growth beyond the 32 MW in power capacity currently owned that generated $9.2M in last twelve months annual recurring revenue. However, InvestingPro analysis reveals the company faces challenges with cash burn and profitability, with revenue declining 38% in the last twelve months to $25.8 million.

The firm noted that SolarBank’s July 2024 acquisition of Solar Flow-Through Funds added 70 contracted solar assets that generate recurring revenue, with additional upside expected from projects constructed for ownership.

D. Boral Capital pointed out that SolarBank is well-capitalized for expansion with over $190 million in total assets and a strong, diversified project pipeline.

The research firm indicated SolarBank has a potential roadmap to reach over $100 million in recurring revenue by 2030 as the company continues developing, constructing, owning, and operating solar photovoltaic farms, battery energy storage systems, and electric vehicle charging stations across the United States and Canada.

In other recent news, SolarBank Corporation has announced a new treasury strategy involving Bitcoin, aiming to integrate it as a strategic reserve asset. This move is part of a broader strategy to enhance financial resilience and attract tech-savvy investors by blending clean energy with decentralized finance technologies. The company has filed an application with Coinbase (NASDAQ:COIN) Prime for custody services for its Bitcoin holdings, although no purchases have been made yet. SolarBank has also recently filed a Form 6-K with the Securities and Exchange Commission, providing updated financial information and corporate governance details. This filing includes Management’s Discussion and Analysis and Condensed Consolidated Interim Unaudited Financial Statements for the periods ended March 31, 2025. Additionally, SolarBank has reported an operational update through another SEC filing, underscoring its commitment to transparency and adherence to regulatory standards. These developments reflect the company’s ongoing efforts to expand its renewable energy projects, supported by recent partnerships and credit facilities. SolarBank’s strategic initiatives and regulatory compliance efforts are being closely watched by investors and analysts alike.

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