Mizuho raises price target but retains Underperform
Mizuho has increased its price target for Enlight Renewable Energy (NASDAQ: ENLT) to $37 from $27, yet the firm continued to rate the stock as Underperform. The bank said it raised the target to reflect expectations for higher run-rate revenues by the end of 2028, with that growth tied to an expanding portfolio, additional acquisitions and what Mizuho described as improved access to capital, including through private placement activity.
Valuation framework and multiples
In updating its valuation framework, Mizuho moved to a relative multiple approach. The new price target is based on applying a 9.0x EV/EBITDA multiple to 2028 core EBITDA, excluding tax credits, which the bank said is consistent with peer multiples. Mizuho argued that excluding tax credits makes peer comparisons more appropriate because such credits are temporary and are better reflected in cash flows than in recurring earnings power.
By contrast, Enlight currently trades at an enterprise value to EBITDA multiple of about 38x, a level Mizuho considers far in excess of its target valuation of 9x. The firm also noted the stock has climbed roughly 293% over the last 12 months and that the company carries a market capitalization of approximately $9.82 billion.
Operational execution and strategic moves
Mizuho acknowledged that operational execution at Enlight has been solid. The firm pointed to ongoing emphasis on growth, progress toward safe harbor qualification, a push into battery storage and increasing activity in European projects. The bank also referenced efficient access to capital in Israel as a positive factor supporting the company’s growth plans.
In line with the financing and expansion theme, Enlight has announced a private placement of 6,002,416 ordinary shares to Israeli institutional investors at NIS 220 per share, representing roughly NIS 1.32 billion. That transaction was approved by Enlight’s board of directors and remains subject to customary closing conditions, including approval for trading on the Tel Aviv Stock Exchange.
Separately, Enlight signed an agreement to acquire a majority stake - between 51% and 60% - in Project Jupiter, an energy storage and solar initiative in Brandenburg, Germany, developed in partnership with Prime Capital AG. The project is planned to include up to 150 MWp of solar capacity and 2,000 MWh of energy storage, has secured a grid connection of up to 500 MW, and is expected to reach ready-to-build status by the end of 2026.
Why Underperform persists
Despite these operational and strategic positives, Mizuho retained its Underperform rating. The bank cited the stock's full valuation and a lack of meaningful differentiation in end-market access relative to peers as key reasons for maintaining the negative view on share performance. Separately, InvestingPro analysis referenced in the bank’s commentary noted the stock appears overvalued and pointed to additional proprietary insights available through its subscriber service.
Bottom line
Mizuho’s updated price target reflects increased 2028 revenue expectations and a shift to a peer-based multiple applied to core EBITDA excluding tax credits. The firm’s continued Underperform designation underscores the gap the bank sees between those fundamentals and the current market valuation, even as Enlight advances its storage and European project footprint and secures new capital commitments.