On December 17, Roth Capital lowered its price target for ReNew Energy Global (NASDAQ:RNW) to $8 from $8.15, maintaining a Buy rating on the shares.
This adjustment came after the company announced on December 15 that Masdar had withdrawn from an investor consortium, leading to the cancellation of a proposed take-private deal. Masdar did not provide an explanation for its decision, which the firm described as unexpected given that both parties appeared close to a final agreement.
Also on December 15, Mizuho reduced its price target for ReNew Energy Global to $7 from $8.15, assigning a Neutral rating. The firm cited Masdar's withdrawal from the consortium as the reason for the revision.
Mizuho suggested the stock selloff on that date was excessive, attributing the downward pressure primarily to arbitrage investors exiting their positions rather than a change in the company's fundamental value.
Consequently, Mizuho's new valuation no longer incorporates buyout expectations. Instead, it is based on no-growth next-12-month EBITDA multiples for the company's power generation and manufacturing segments through fiscal year 2028, aligning ReNew Energy Global more closely with its industry peers.
ReNew Energy Global, together with its subsidiaries, generates power through non-conventional and renewable energy sources in India. It operates through five segments: Wind Power, Solar Power, Hydro Power, Transmission Line, and Manufacturing.