It has perhaps taken a little longer than it should have – 5 years, for the stock market to appreciate the fundamental merit of Spanish renewable energy specialist Acciona. This has not been helped by the distinctly weak company motto – “Business as Unusual.” Perhaps this is something lost in translation?
As far as the group’s strategy is concerned though, it has been doing rather better, a point underlined by the way that some three years ago the group completed a merger with Nordex to create a wind power giant, buying 29.9%. One might have thought that that was the end of the matter. However, those familiar with the situation are now suggesting that Acciona is about to bid for the rest of Nordex, cementing its position within this particular renewable space.
Presumably, such speculation is the reason why shares of Acciona have been firm of late, pushing above the 50-day moving average at €99.80. The technical view is that at least while above the 50-day line the upside here could be as great as the top of a rising trend channel drawn on the daily chart with its resistance line heading as high as €114 – a decent 2-3 months target.
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