- Arise has refinanced their bond = less risk.
- Demand for wind power projects among institutional investors has risen.
- Valuation gap. Trades at half book value while competitor Eolus trades at book value. The size of their pipelines is the same.
- The forward price curve for electricity has improved. Probably a function of the price of coal and carbon emission quotas rising throughout 2017 and continuing in 2018 laying a floor under the price of electricity.
Summary: The fundamentals have improved while the price of the stock has fallen to 12,50 SEK. I expect a rerating to occur and see fair value in the 18-19 SEK range.