Engie (EGIE3) made a loss by selling its 15% stake in Transportadora Associada de Gás (TAG) to Canadian fund CDPQ, according to Genial Investimentos. This is because the house considers the amount of R$3.11 billion to be low in relation to the real potential of the asset.
“From the perspective of multiples based on the numbers the asset offers in terms of annualized value (a less objective inference than using our models), we see very low multiples that do not price in the asset’s high profitability, high margins, long-term cost of contracts, growth potential and control premiums,” commented Genial.
And in this house Reducing recommendation for Engie sharesl com. comprar to He sells.
“Aside from our impression of the sale itself, at current price levels, we believe the company does not offer interesting appreciation potential in relation to the current target price, which does not even take into account the implied value destruction in relation to our assessment of the current target price,” he said. TAG Share In the company”.
The target price expected by Genial is R$42.00 per share.
Above all, the company estimates that Engie’s total stake in TAG is worth R$9.2 billion, as Genial considers the asset’s great potential for expansion over the next few years which, for analysis, does not seem to be included in the transaction multiples.
In the fourth quarter of 2023, TAG reported earnings of R$985 million, EBITDA of R$2.047 billion, and revenue of R$2.3 billion.
