Davy upgrades NTR on transformation


Former toll-roads turned green energy group, NTR, has succeeded in transforming itself in the past year and, following the sell-off of non-core businesses is poised for a major expansion, according to Davy Research.

Davy upgraded shares in the group, which are traded on the so-called 'grey market' - citing 'significant expansion of the recycling businesses as well as for new investments in distinct renewable energy sectors'.

'NTR is trading at a discount to our sum-of-the-parts post-redemption valuation of 661c, which does not include any value for potential future upside' - the broker's note said.

Shares in NTR are currently trading in the limited market at just under €6.00 and have bucked the trend of the open-market ISEQ index-listed shares in recent months - rising from €5.00 a share this time last year.

"The stock looks attractive on this basis, particularly given NTR's strong balance sheet and the very favourable macro environment for the sectors in which the group operates" - Davy said.