PPC has just successfully completed a capital increase equivalent to approximately 70% of its previous market capitalization in order to substantially accelerate its strategy: during the period 2026–2030, PPC aims to invest €24 billion, primarily to accelerate the addition of renewable energy projects and storage systems across Southeast Europe, according to a Goldman Sachs report.
At the same time, PPC is entering the data center infrastructure sector for the first time—a rapidly growing industry with strong profitability prospects—with the first project expected to become operational in 2028. This plan could double PPC’s installed capacity in just five years, cement its role as a data center infrastructure developer, and create a scalable pipeline of development projects beyond 2030.
Buy recommendation with a target price of €26.5
Our base case scenario assumes a gradual reduction of approximately 30% in electricity prices, a cut of approximately 20% in the company’s targets for adding renewable energy and storage projects, as well as zero contribution from data centers.
Even under these conservative assumptions, we estimate a compound annual growth rate (CAGR) of net earnings of approximately 20% through 2030. By then, earnings per share (EPS) are expected, based on our estimates, to reach €1.79 per share, implying a P/E ratio of 12.5 times. We are re-initiating our Buy recommendation with a target price of €26.50, the analysts write.
Full implementation scenario: €30 per share
Full implementation of the plan on schedule and within budget could support a valuation of €30 per share — even under the same assumptions regarding the normalization of electricity prices and without any expansion of valuation multiples relative to our base case.
As the plan’s implementation progresses, we see room for our base case to converge toward this level and, over time, support a valuation upgrade. This would imply a P/E ratio of 10 times for 2030 based on current share prices—one of the lowest among comparable companies in the sector. Maintaining resilient electricity prices could offer further upside potential.
Key catalysts in the near term
DEI appears to be close to reaching an agreement with a hyperscaler for its first data center project, according to recent reports and management comments. This, combined with tangible signs of progress in the implementation of renewable energy projects, could serve as a significant catalyst for the company’s investment case.