Investorideas.com

Get investor ideas from our AI, cannabis, cleantech, crypto, gaming, mining, sports podcasts - be a guest or sponsor: call 800 665 0411


Share on StockTwits

Coverage Initiated on Firm 'Well Positioned to Benefit from the Rapidly Growing Solar Market'

Source: Streetwise Reports

 

March 4, 2021 (Investorideas.com Newswire) The key reasons why UGE International is a compelling investment opportunity are presented in a PI Financial report.


In a Feb. 22 research note, analyst Devin Schilling reported that PI Financial initiated coverage on UGE International Ltd. (UGE:TSX.V; UGEIF:OTCQB) with a Buy rating and a CA$5.25 per share 12-month price target. UGE's share price is currently trading around CA$2.18.

Calling UGE a "solar developer set to eclipse the competition," Schilling wrote, "With a turnaround largely complete and a strategic shift entering into the owner/operator business model behind them, we believe UGE is well positioned to benefit from the rapidly growing solar market." The company specializes in commercial and community solar energy projects.

The analyst presented the main reasons PI Financial is bullish on the UGE investment opportunity.

First, the U.S.' solar industry is "growing at a rapid pace" due to favorable government policies and related tax incentives, decreasing costs (they are now 70% lower than in 2010) and rising demand for clean electricity, Schilling highlighted. In the last decade, the industry grew an average of 49% each year.

Two, the U.S. community solar market is also expected to grow, Schilling wrote, by about 130% over the next five years.

"With governments around the globe implementing stronger environmental policies designed to fight climate change in addition to corporations and individuals facing pressure to meet sustainability targets, we believe UGE is well positioned to benefit from continued expansion of the solar industry over the foreseeable future," Schilling commented.

Three, UGE shifted its business model from working for other solar operators to building, owning and running its own solar projects, Schilling pointed out, which affords it further upside. The owning and operating elements should provide UGE with a steady, recurring revenue stream and generate much higher margins.

"A growing recurring revenue stream could result in a rerating for UGE and provides additional upside to our target price," Schilling noted.

Four, UGE's expanding project backlog, last valued at US$112 million on Sept. 30, 2020, forecasts future revenue, in two forms. About US$12.7 million of upfront revenue is anticipated as the company installs projects over the next two years, and roughly US$10.7 million of annual recurring revenue is forecast over the 20-plus-year life of UGE's projects.

Schilling also noted that UGE is currently trading at an unwarranted discount to its peers but expects the gap to shrink, in part, as more and more investors learn about the company.

"We anticipate the pace of contract announcements will further ramp up with the Biden Administration having announced plans to adopt a strong clean energy and climate agenda which calls for US$2 trillion in spending over the four-year term," Schilling added.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: UGE International. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with UGE International. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of UGE International, a company mentioned in this article.

Disclosures from PI Financial, UGE International, Initiating Coverage, February 22, 2021

I, Devin Schilling, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the specific recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report.

Research Disclosures for UGE Interational:

1) PI Financial Corp. and its affiliates' holdings in the subject company's securities, in aggregate exceeds 1% of each company's issued and outstanding securities. No

2) The analyst(s) responsible for the report or recommendation on the subject company, a member of the research analyst's household, and associate of the research analyst, or any individual directly involved in the preparation of this report, have a financial interest in, or exercises investment discretion or control over, securities issued by the following companies. No

3) PI Financial Corp. and/or its affiliates have received compensation for investment banking services for the subject company over the preceding 12-month period. Yes

4) PI Financial Corp. and/or its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company. Yes

5) PI Financial Corp. and/or its affiliates have managed or co-managed a public offering of securities for the subject company in the past 12 months. No

6) The following director(s), officer(s) or employee(s) of PI Financial Corp. is a director of the subject company in which PI provides research coverage. No

7) A member of the research analyst's household serves as an officer, director or advisory board member of the subject company. No

8) PI Financial Corp. and/or its affiliates make a market in the securities of the subject company. No

9) Company has partially funded previous analyst visits to its projects. No

10) Additional disclosure: No

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by revenue generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits






RenewableEnergyStocks.com: investing ideas in renewable energy stocks

Like Renewable Energy Stocks? View our Renewable Energy Stocks Directory

Get News Alerts on Renewable Energy Stocks

Buy a renewable energy guest post on Investorideas.com