Citi sees high returns and doubling of operating profitability (EBITDA) in Mytilineos

Citi describes in a special report Mytilineos’ “ambitious” plan for the “green” transformation of its activities based on the use of solar energy as against thermal, while also emphasizing the increase of the exposure of its industrial sector to the cyclical economy through the production of recycled aluminum.

“This transformation will put the company ahead of its peer groups that operate with low-cost aluminum production,” Citi noted, adding that it estimates it will double its EBITDA and share price. According to the international financial house, the further possibilities of the company from the above-mentioned initiatives are underestimated by the market.

The financial services multinational, on the occasion of the planning for the aluminum industry, signals the increase of the target price for the Mytilineos share to 20 euros.

Analysts note that recycled aluminum will account for 25% of production.

In addition, they predict that Renewables will reach 50% of the electricity portfolio – the commissioning of the 0.8GW power plant will increase its installed capacity to 2.4GW, and will be a key driver of growth in the near future. In addition, Mytilineos, according to Citi, aims to install a 1.5GW solar power plant, which could increase its renewable energy portfolio to 2GW by 2024.

Citi estimates “big” profits and specifically sees a doubling of EBITDA for 2023 compared to 2020 with additional operating profits of 200 to 250 million euros.

For 2025, it forecasts operating profits of 900 million Euros compared to 315 million Euros in 2020