SCATC.OL stock pitch

Scatec ASA ($SCATC.OL) is a renewable IPP trading at 8x EV/EBITDA on FY25 guidance of $395-424M EBITDA. The company is benefiting from a tariff uplift in the Philippines, and its projects in Egypt (1.1GW) and South Africa (846MW) are progressing. The data center boom is a tailwind for the company. Risks include FX exposure (PHP/ZAR/BRL/EGP), hydrology variability, and EPC margin pressure. The company has $1.77B in proportionate debt and $521M in liquidity. The author estimates a fair value of $9.50 with an upside to $17.20.