Buy signal on Engie EPS
Electro Power System is a €117 M market cap, and the technological division of ENGIE which focuses on energy storage systems and microgrids, enabling the paradigm shift in the global energy system towards renewable sources and decentralized energy production. EPS has installed storage systems and microgrids on a global scale: in developed economies, promoting energy storage systems for the stabilization of electrical grids with high penetration of intermittent renewable sources, and in emerging countries and islands, that rely entirely on diesel generation, developing microgrids composed of renewable sources and storage systems, which generate off-grid energy at lower costs than fossil fuels.
EPS is expected to deliver a €40M revenue in 2021 (versus €13M in 2020) and to grow quickly thereafter. EPS just announced a joint-venture with FCA (which will retain a slight majority), that will offer a full range of products and solutions, including residential, business and public charging infrastructure as well as green energy packages for electric vehicle customers across Europe.
Short term catalyst: FCA JV, topline growth.
This signal looks consistent with the Bullish reversal in the clean energy / storage theme.