Acciona Energia's Growth Exceeds Expectations in 2022; Shares Fairly Valued

We are currently maintaining our fair value estimate of EUR 35 for no-moat Acciona Energia as we roll our model to incorporate full fiscal 2022 results. EBIT jumped 76% in 2022, as increased volume demand and achieved power prices in Spain compounded with a Spanish regulatory banding mechanism regarding the company's standard regulatory facilities (excluding biomass generation) being reversed. The reversal had a positive effect of EUR 10.2/MWh to the average achieved power price in Spain, pushing it to EUR 167.6/MWh and raising EBT higher than our expectations. The company will pay a dividend of EUR 0.70 per share on 2022 results, implying a 1.9% dividend yield. We view shares as fairly valued.