FP Foresight Global Real Infrastructure Fund on Grenergy Renovables, S.A.
Thesis
Grenergy is among the portfolio’s fastest-growing businesses, with a substantial solar photovoltaic and battery-storage development pipeline being built at pace. Although the shares suffered from a reassessment of aggressive growth assumptions, the managers expect the company to sustain its historical project-delivery performance. They believe Grenergy can meet its financial guidance over the coming year despite the analyst downgrades and recent price weakness. The thesis rests on execution of its renewable-power investment pipeline rather than a near-term rebound in sentiment.
“we expect the company to maintain its strong track record of delivery and meet its financial guidance over the coming year.”
Key risks
- A sell-side analyst cut earnings-growth forecasts amid concern about growth ambitions.
- Construction and execution risk across the large solar and battery project pipeline.
- Higher bond yields pressure valuations and financing economics for renewable infrastructure.