Eurobank Equities has set a new, higher target price for ADMIE Holdings shares, raising its estimate to €4.40 from €3.66 previously, while maintaining its “buy” recommendation.
The catalyst is ADMIE’s new investment program, which is expected to transform the Operator’s growth profile and significantly accelerate its profitability in the coming years.
According to the analysis, the forecast revision incorporates ADMIE’s updated investment plan for the 2026–2029 period, which leads to a dramatic increase in the Regulated Asset Base (RAB). Eurobank Equities estimates that the RAB will surge to €6.9 billion by 2029 from €3.4 billion in 2025, recording an average annual growth rate of approximately 20%.
This growth is expected to fuel strong financial performance, with EBITDA growing at a rate exceeding 20% annually and net profits increasing by approximately 30% annually during the 2026–2029 period.
As noted, ADMIE’s investment profile is now shifting from a traditional high-dividend-yield stock to an infrastructure investment with strong growth characteristics. The Operator is emerging as a key driver of the energy transition in Greece through investments in electrification, the integration of new renewable energy projects, and the strengthening of the transmission system’s resilience.
The brokerage firm believes that investment execution risks are now more manageable than in the past, thanks to improved financing visibility following the upcoming capital increase, more favorable borrowing conditions, as well as support from the European Investment Bank and available subsidy programs.
In this context, an injection of new capital amounting to €1 billion is expected at the ADMIE level, with ADMIE Holdings participating proportionally in order to maintain its 51% stake in the Operator. Eurobank Equities estimates that the capital increase will be priced at approximately €3.70 per share, which implies a dilution of about 38% for shareholders who do not participate.
Despite the stock’s strong recent rise, the brokerage firm maintains that the market has not yet fully priced in the group’s growth prospects. As it points out, the stock is trading near the book value of the regulated asset base, while comparable European infrastructure companies are valued at a significant premium.
Based on the new data, Eurobank Equities sets the target price at €4.40, seeing further upside potential as investment financing progresses and new infrastructure projects translate into profits and dividends.