Description
Australian analyst firm East Coast Research has updated its valuation for Altech Batteries (ASX:ATC,FRA:A3Y) to a slightly higher range, as it added Altech’s CERENERGY batteries project to its model.
In the initiation report from February 15, 2024, the company was valued at AU$0.15 per share in the base case and AU$0.21 per share in the bull case, based solely on the DCF valuation of Altech’s Silumina AnodesTM Project. The addition of CERENERGY to the valuation model upgraded the valuation to range from AU$0.16 per share in the base case to AU$0.22 per share in the bull case.
“The observed marginal impact on our per-share target valuation range stems largely from Altech’s ownership stake in the CERENERGY project being less than 60 percent and the fact that Fraunhofer’s 25 percent stake in the project is free-carried, thus not contributing to project development costs. Our DCF model is broadly based on the assumptions of Silumina Anodes DFS and CERENERGY Battery DFS results and net of minority interests in both projects,â€� the East Coast Research Report stated.
The key risks to the investment thesis, the report noted, include uptake, competition, exchange rate and funding risks.
Highlights of the report include:
The company is actively engaged in the funding process for the CERENERGY Battery plant, with favorable prospects due to the project’s alignment with Europe’s commitment to renewable energy transition.Altech has signed non-disclosure agreements with major utility conglomerates in Germany, indicating strong interest in its CERENERGY 1 MWh GridPack batteries.
For the full analyst report, click here.
This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].
Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.
