UBS ups Solaria to 'buy' on strong power demand driven by data centres and 'BESS'

SOLARIA ENERGIA Y MEDIO AMBIENTE SA

30/05/2025 10:43

** UBS upgrades Solaria SLRS.MC to "buy" from "neutral" as the market is overlooking the turning point driven by data centres and batteries/storage ('BESS') gaining momentum

** Solaria's shares up around 7% on Friday after surging 4.4% in the previous session

** "On top of that, Solaria has already secured 1.2GW of data centre connection points and we expect a first deal in H2, likely a powerful positive catalyst"- UBS

** Broker also sees solar market as the cheapest energy source and says the company is "the most competitive player in the market" in its view

** UBS expects Solaria to get about 10% market share and sees the company with 3.1GW in operation in 2025 in a scenario of zero growth

** Shares on track for best day since min-June 2024, when it closed 9.8% higher

** Including session's rise, stock has dropped 4.54% YTD​

(Reporting by Tiago Brandao)

((Tiago.Brandao@thomsonreuters.com;))