DAVY VIEW

Greencoat Renewables’ (Greencoat) results briefing highlighted a business that is set to create meaningful shareholder value in the current environment. Recent strategic progress has structurally improved its financial outlook – its illustrative scenario suggests it will generate c.€1bn of net cash over the next 5.5 years (c.85% of its current market cap or c.85c per share), creating the flexibility to allocate capital in several equity value-enhancing ways. With the stock trading at a 12% discount to its last reported NAV (113.2c/share), and indicatively on 8x 2023 EV/EBITDA, we view the current share price as a compelling entry point to a highly attractive investment case.