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Investing.com - Piper Sandler has lowered its price target on Solaris Energy Infrastructure (NYSE:SEI) to $50.00 from $51.00 while maintaining an Overweight rating on the stock. The $1.8 billion market cap company currently trades at a P/E ratio of 41x, significantly above industry averages. According to InvestingPro analysis, the stock appears overvalued based on its proprietary Fair Value model.
The price target adjustment follows SEI’s announcement on Monday of its acquisition of HVMVLV for $45-50 million, which includes $26 million in cash and approximately 700,000 shares. The deal represents less than a 4x multiple based on HVMVLV’s mid-teens trailing twelve-month EBITDA.
SEI plans to fund the cash portion of the acquisition through expected working capital release in the third quarter of 2025, according to Piper Sandler’s research note.
The acquisition strengthens SEI’s balance of plant offering, which Piper Sandler identifies as a key differentiator for the company in addressing the data center market. HVMVLV brings customized rental electric control and distribution equipment with design and engineering services to SEI’s portfolio.
The deal also expands SEI’s end market exposure to healthcare, utilities, hospitality, and industrial sectors, while bringing the company further upstream in power project planning to create an integrated solution across generation and distribution.
In other recent news, Solaris Energy Infrastructure reported impressive financial results for the second quarter of 2025. The company posted an earnings per share of $0.34, significantly surpassing the forecasted $0.21, and achieved revenue of $149.3 million, exceeding predictions by 21.18%. In a related development, Raymond (NSE:RYMD) James raised its price target for Solaris Energy from $38 to $41, maintaining an Outperform rating, following the company’s earnings beat. Solaris Energy’s Power Solutions segment contributed notably to this performance, delivering an adjusted EBITDA of $45.7 million. Additionally, Solaris Energy has expanded its market presence by dual listing its Class A common stock on NYSE Texas, while keeping its primary listing on the New York Stock Exchange. The company also announced the acquisition of HVMVLV, LLC to enhance its power services portfolio, internalizing key capabilities related to electrical control and distribution equipment. This acquisition supports Solaris Energy’s Power-as-a-Service strategy, with HVMVLV’s management team remaining to provide technical expertise. These developments highlight Solaris Energy’s strategic moves to strengthen its market position and operational capabilities.
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