Solaris Energy Infrastructure (SEI) Valuation Update - Feb

[dan_s]

This morning SEI was trading at $27.67

I have updated my forecast valuation model for SEI, breaking out 2025 by quarter and updating my 2026 forecast.
My valuation increases to $38.00 per share.

First Call's price target is $39.67

TipRanks: "On January 24th, Stephen Gengaro from Stifel Nicolaus (Rated 4 Stars by TipRanks) maintained a Buy rating on Solaris Energy Infrastructure (SEI), with a price target of $42.00." < My 2025 forecast is now very close to the consensus revenue forecast shown on TipRanks. My Net Income and Operating Cash Flow Forecasts are slightly higher, just because I think some of the analysts are being very conservative on their gross margin forecasts.

The "Transformative Acquisition" of Mobile Energy Rentals LLC closed on September 11, 2024. So Q4 2024 results will be the first full quarter of combined results and I expect the company to provide more details on their guidance for 2025. < Q4 financial results will be announced on February 20 after the markets close, followed by a conference call the next morning at 9AM CT.

Solaris is a highly respected engineering firm, with a record of generating steady net income and free cash flow.

[dan_s]

Lawmakers will introduce a bill Thursday to ban DeepSeek from U.S. government-owned devices over growing alarm the chatbot application is providing user data to the Chinese government, The Wall Street Journal reports.

[aja57]

SEI up to 26% this morning on great earnings.

[ChuckGeb]

Curious: your update appears to be issued before earnings were released last night. Stock now trading at your updated valuation. What's up with that?

[Cliff_N]

Simply Wall Street on SEI before market opened:

Key Insights
Using the 2 Stage Free Cash Flow to Equity, Solaris Energy Infrastructure fair value estimate is US$57.34

Current share price of US$29.34 suggests Solaris Energy Infrastructure is potentially 49% undervalued

The US$39.00 analyst price target for SEI is 32% less than our estimate of fair value