With a target price range of €5.06 to €5.30, a “buy” recommendation, and an estimated upside potential of over 27% Optima Bank initiates coverage of ADMIE Holdings, characterizing the company as the only firm listed on the Athens Stock Exchange that offers direct exposure to the development of the Greek electricity transmission network.
The investment case is based on ADMIE, which holds a monopoly on electricity transmission in Greece and is expected to benefit from the penetration of renewable energy sources, electromobility, the expansion of data centers, and new interconnections. Optima estimates that the operator’s Regulated Asset Base (RAB) will double by 2029, from approximately €3.3 billion in 2025 to nearly €6 billion.
The brokerage firm forecasts an increase in EBITDA and net profits at an annual growth rate of 21% and 27%, respectively, for the 2025–2029 period, thanks to the favorable regulatory rates approved by RAE for the new regulatory period.
At the same time, it expects a gradual increase in dividend payouts, with the dividend per share ranging between €0.14 and €0.23 for the 2026–2029 period, offering a dividend yield of 3% to 5.6%.
A catalyst for growth is the investment program totaling approximately €6 billion through 2029, which will be financed in part through a share capital increase totaling approximately €1 billion. According to Optima, the valuation of ADMIE Holdings ranges between €5.06 and €5.30 per share following the completion of the capital increase, implying an upside potential of 22.9%–28.7% relative to current levels.