Last Updated: 17 Sep 2024
Executive Summary
Enlight Renewable Energy Ltd. (ENLT) is a leading renewable energy company with operations in the United States, Europe, and Israel. The company has a strong track record of growth and profitability, and is well-positioned to benefit from the increasing demand for renewable energy. The stock is currently trading at a discount to its fair value, and we believe it is a good investment for long-term investors.
Company Overview
Enlight Renewable Energy Ltd. was founded in 2008 and is headquartered in Rosh Ha'ayin, Israel. The company develops, constructs, and operates solar and wind power plants. As of December 31, 2023, the company had a total installed capacity of 2.2 gigawatts (GW).
Enlight Renewable Energy Ltd. has a strong track record of growth. The company's revenue has grown from $100 million in 2015 to $307 million in 2023. The company's EBITDA has also grown significantly, from $20 million in 2015 to $204 million in 2023.
Fundamental Analysis
Enlight Renewable Energy Ltd. is a profitable company with a strong balance sheet. The company's gross profit margin is 50%, and its operating margin is 41%. The company's debt-to-equity ratio is 0.5, which is considered to be a healthy level.
The company's earnings per share (EPS) is expected to grow by 20% in 2024. This growth is expected to be driven by the company's continued expansion into new markets and the increasing demand for renewable energy.
Technical Analysis
The stock price of Enlight Renewable Energy Ltd. has been in a downtrend since reaching a high of $20 in January 2023. The stock is currently trading at $15.72, which is below its 50-day and 200-day moving averages.
The technical indicators are suggesting that the stock is oversold and could be due for a rebound. The relative strength index (RSI) is below 30, which is considered to be oversold territory. The moving average convergence divergence (MACD) is also below zero, which is another sign of oversold conditions.
Short Term Outlook
We believe that the stock price of Enlight Renewable Energy Ltd. could rebound in the short term. The technical indicators are suggesting that the stock is oversold and could be due for a bounce. We would recommend buying the stock at current levels.
Long Term Outlook
We believe that Enlight Renewable Energy Ltd. is a good investment for long-term investors. The company has a strong track record of growth and profitability, and is well-positioned to benefit from the increasing demand for renewable energy. We believe that the stock is currently trading at a discount to its fair value, and we would recommend buying the stock for the long term.
Analyst Recommendations
The majority of analysts have a buy rating on Enlight Renewable Energy Ltd. The average analyst target price is $20, which represents a potential upside of 27% from the current price.
