Initiation of Coverage – 22.04.2024

ESPE SpA (“ESPE”, or the “Company”) was founded in 1974, in Grantorto, in the Province of Padua, Italy, as an artisan company in the industrial plant engineering sector, and then embarked on a growth path in the field of renewable energies, technological systems and automations. To date, the Company is active in the renewable energy sector, specializing in the design and construction of innovative, high efficiency and high performance eco-sustainable electrical systems, including small wind power systems, biomass cogenerators, and ground and roof photovoltaic solutions. Furthermore, the Company is one the first Energy Systems Integrators at the national level in Italy. ESPE is able to design and build various kinds of plants, covering all the key phases of the renewable energy value chain, from project development and plant engineering through to actual construction, according to financial sustainability planning. The business is organized in two divisions: Production, and Plant Engineering. For the small wind power and biomass market, the Production division designs and develops a series of proprietary technology systems and solutions, including wind turbines for small wind farms, and biomass cogenerators, ready for installation at the customer’s site. The Plant Engineering division, on the other hand, realizes turnkey photovoltaic systems as an EPC Contractor, and installs industrial electrical systems as Energy Systems Integrator. We conducted the valuation of ESPE’s equity value based on the DCF methodology and the multiples of a sample of comparable companies. The value resulting from the application of the DCF method (which includes a prudential specific risk of 2.5% in the WACC calculation) is € 60.7 million, while the value resulting from the multiples method is € 37.7 million. This results in an average equity value of € 49.2 million. The target price is € 4.15, with a BUY rating and MEDIUM risk.

Leggi il pdf