FRANKFURT (dpa-AFX) - Another pessimistic analyst comment accelerated the recent slide of Encavis shares on Thursday. Following a drop of more than four percent the previous day, the securities of the solar and wind farm operator slumped by a further eight and a half percent to 16.40 euros at midday on Thursday. The shares thus fell back to the level of mid-March.

The price slide also pushed Encavis shares to last place in the MDax. At the same time, the mid-cap index lost around two percent.

On Thursday, the investment bank Stifel had downgraded Encavis shares to "Hold". It thus assumes that the shares will only have a total return of between minus five percent and plus ten percent over a twelve-month period. This is calculated from a combination of share price development and dividend yield.

According to Stifel analyst Martin Tessier, recently published company statements indicate that the project pipeline is likely to be reduced by about one third in addition to the known delays. The expert favors a wait-and-see approach to Encavis shares before the next strategic plan is unveiled. He currently sees little potential for an increase in the 2025 capacity target.

On Wednesday, analyst Dominic Nash from British investment bank Barclays had already expressed skepticism, weighing on Encavis' share price. The expert does expect 2023 to be a good year for broad-based energy companies. For companies focused on the renewable energy sector, however, he is taking a more cautious position in some cases due to high valuations. The securities of Encavis, for example, are currently experiencing a general increase in valuation ratios, it said.

From a chart perspective, the picture has clouded significantly over the course of the week. For example, on Wednesday, the shares already sank below the 21-day average line, which describes the short-term trend. In the medium and long term, the trends have been pointing downwards since mid-December./la/ajx/jha/