The new business plan of PPC for the 2026–30 period is based on the group’s existing strategy, aiming to optimize returns mainly through accelerating the development of RES units, leveraging the existing customer base, while incorporating into the business plan expansion into new markets in order to capitalize on favorable regional factors, an Axia - Alpha Finance report on the stock notes.
Few players in the region have the scale and financial flexibility required to implement such a strategy. The group’s entry into the data center sector (MoU with Amazon Web Services for 300MW in Greece) introduces a new dimension to the investment case, with limited downside risk (infrastructure development only, excluding IT).
Importantly, the plan could be scaled up significantly, thus materially broadening the long-term growth opportunity. This optionality provides further support for the timely execution of capital expenditures and the achievement of financial targets.
Following the successful share capital increase of €4.25 billion, PPC has the financial strength to advance its ambitious investment program, while at the same time maintaining guidance for dividend distribution (from €0.80 in 2026 to €1.40 by 2030).
PPC continues to trade at a discount to European integrated utilities, a valuation gap that we consider unjustified given the consistent achievement of strategic and financial targets, the multiple growth drivers linked to the investment story, and the fact that it operates in a region offering higher returns on investments in power generation.
We have updated our model to incorporate the new investment initiatives, with the SOTP model yielding a target price of €29.10 (€25.4 previously). We reiterate the Buy recommendation for PPC.