Stifel maintains its Buy rating on Neoen shares, with a price target lowered from €37 to €35.

Results for fiscal 2023 and forecasts for 2024 will be presented on February 28. In the meantime, Stifel reports that it is 3.5% below the consensus EBITDA for 2024 compiled by Neoen, which implies annual growth of 13%.

"Our EBITDA CAGR (Compound Annual Growth Rate) of 23% for the period 2023-2025 (versus an industry average of 10%) is underpinned by a solid construction order book that will see at least 1.7 GW commissioned by the end of 2025 (~70% of assets under construction)", the broker

The analyst is also optimistic, pointing to 'normalized unit investment levels, an almost unchanged construction schedule, the absence of exposure to US politics, and significant earnings potential', which are just 'some of the positives we see for equities in 2024'.

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