The signing of a billion dollar contract with Nordex proves the outstanding position of Aeris (AERI3) with large wind turbine assemblers, said the BTG Pactual (BPAC11).
“The signing of additional capacity once again demonstrates Aeris’ strategy of positioning itself as an important local supplier to global automakers, thus benefiting from the growth of the wind energy market in Brazil,” said the bank.
The company said last night, in a material fact disclosed to the market, that it had signed a contract with Nordex for the supply of wind blades, continuing the agreement signed in 2019, when the two companies agreed to supply four lines. The new contract contemplates the conversion of two existing and contracted production lines to a blade model for wind turbines with a power of more than 5 megawatts, in addition to the installation of a new production line of the same model.
The contract is expected to run through the end of 2023. Aeris will supply Nordex with the wind blades, resulting in a net increase of 2 gigawatts in the portfolio. An incremental increase of R$1.6 billion in net revenue is estimated.
According to BTG, the deal could put pressure on margins in the short term. However, in the medium/long term, it should minimize the risk of Aeris’ growth thesis.
“Looking at the long term, Aeris’ investment case remains that of a clean energy company, high growth, increasing returns, leveraged by visible economic advantages (low cost structure and high quality producer in the industry),” he commented.
In evaluating the Santander (SANB11), the agreement is a positive development for Aeris. The bank highlighted that, with it, the company’s order book reaches around 98.5% of the projected volumes between the second half of 2021 and 2023.
Both BTG and Santander reiterated the purchase of the company’s share. The target price suggested by BTG is BRL 14.
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