Buy Signal on Albioma (ABIO-FR)
Our system also triggered an Exit short tactical signal on March 3, 2022, if an Enter long tactical Signal should occur, it would suggest a bullish acceleration. Albioma has a strong track record with a behavorial score of 9/10, therefore we consider the signal as mainly long term.
Albioma is a € 1 Bn market cap independent renewable energy producer committed to the energy transition through renewable energies (biomass, solar and geothermal energy).
The group, established in French overseas territories, in metropolitan France, Mauritius, Brazil and Turkey, has developed a unique partnership for 25 years with the sugar world to produce renewable energy from bagasse, fibrous residue of sugar cane. Albioma is also the leading producer of photovoltaic energy in Overseas France, where it builds and operates innovative projects with storage, as well as in mainland France. Recently, the group announced the acquisition of a geothermal power plant in Turkey.
Renewable stocks are clearly benficiaries from the curent decoupling between Russia and Europe, and the intent of the latter to lower its dependance to Russian Oil & Gas, towards acceleration of the Energy transition.
There are also some M&A talks concerning renewables stocks, and lastly a rumor that KKR could be interested in acquiring Albioma, among others companies interested to increase poisition in renewables.
For 2022, Albioma is expected to post a €590m revenue coupled with a 10% net margin. EPS are expected to grow by double digit in the next 3 years. The stock currently offers a 2.7% dividend yield.
Short term catalyst: Accelerated energy transition, M&A.
This signal looks consistent with the European Utilities Renewables sector in bullish momentum, while there is 67% of stocks in bullish tactical signal and 50% in bullish strategic signal within the European Utilities Renewable sector.