Boralex (TSX:BLX) Valuation After Clashindarroch Wind Farm Extension Approval and Growth Pipeline Progress

Boralex (TSX:BLX) just secured Scottish Ministers’ approval for its Clashindarroch Wind Farm Extension, adding up to 189 MW of wind and storage capacity, plus long term community funding, sharpening the stock’s expansion story.

See our latest analysis for Boralex.

The approval lands at a time when Boralex’s momentum is tentatively improving, with a 1 month share price return of 7.25 percent contrasting with a weaker 1 year total shareholder return of minus 8.15 percent. This suggests sentiment is stabilising after a tough few years.

If this kind of renewables driven story has you thinking about where else growth and capital are lining up, it might be worth exploring fast growing stocks with high insider ownership.

Yet with shares still well below analyst targets despite double digit revenue growth and a hefty intrinsic value discount, investors face a familiar dilemma: is Boralex a mispriced clean energy play or is future growth already baked in?

Most Popular Narrative: 26.5% Undervalued

With Boralex last closing at CA$26.18 against a most popular narrative fair value of CA$35.60, the gap points to sizeable upside if assumptions land.

Continued execution of Boralex's robust organic growth pipeline (approaching 7.3 GW across wind, solar, and storage) and recent successful financings reinforce the company's ability to sustain and accelerate project commissioning, which sets the stage for future revenue and EBITDA expansion.

Read the complete narrative.

Curious how a renewables developer with negative earnings today earns such a premium valuation tomorrow? The narrative leans on accelerating revenue, rising margins, and a punchy profit multiple. Want to see the exact growth path that has to play out?

Result: Fair Value of $35.60 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside hinges on weather cooperating and European regulation staying supportive, as weaker wind or policy shifts could quickly pressure margins.

Find out about the key risks to this Boralex narrative.

Build Your Own Boralex Narrative

If the story so far does not quite fit your view and you would rather dig into the numbers yourself, you can build a complete narrative in just a few minutes, Do it your way.

A great starting point for your Boralex research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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