Chart alert and buy recommendation! SMA Solar, Nordex and RE Royalties

RE Royalties: Will the shares jump after a positive update?

Strong update from RE Royalties. The Canadian company finances renewable energy projects and secures long-term revenue shares, known as royalties, in return. The shares have not yet reacted to the news, even though the content was positive.

RE Royalties is expanding its international portfolio and investing USD 1.5 million in revenue shares (royalties) from nine rooftop solar installations already operating in the Philippines. The installations, with a total capacity of 14.2 MW, are located on shopping centres and have long-term power purchase agreements. RE Royalties receives quarterly payments based on gross revenues throughout the life of the projects. With the transaction, the Canadian company is entering the Southeast Asian market and gaining a new development partner. This partner has projects totalling around 138 MW at an advanced stage of development, as well as a further project pipeline of more than 700 MW. This could give rise to additional investment opportunities.

There are also developments in the US, which, together with Canada, is the most important market for RE. Outagamie Clean Energy Partners (OCEP) has repaid a secured loan of USD 4.6 million to RE Royalties in full. The final repayment instalment amounted to around USD 938,000. At the same time, the first royalty payment from the project has already been received. Over the next ten years, RE Royalties will receive a fixed annual payment of 4% of the originally invested capital. This equates to USD 184,000 per year or USD 1.84 million in total. The financed project in the US state of Wisconsin produces renewable natural gas from agricultural waste. The project clearly demonstrates the strength of the business model. The capital originally invested is available again for new investments, while the agreed royalty income continues to flow.

RE Royalties also provided an update on the status of the strategic review initiated in March 2026. The review aims to identify opportunities to increase the company's value and explore additional financing options for the growing investment pipeline. According to the company, discussions have already taken place with various interested parties and are continuing. No concrete results have been announced so far. The strategic options extend to a potential takeover of RE Royalties.

Nordex follows up

While Nordex shares continue to weaken, the positive operational news flow continues. Following positive preliminary figures and buy recommendations from analysts, the wind turbine manufacturer has followed up with more news. Nordex is entering a new market. The company has received an order from New Zealand for the first time. Energy supplier Mercury has ordered 40 N133/4.8 wind turbines with a total capacity of 192 MW. The turbines are intended for the Puke Kapo Hau wind farm in the Otago region on New Zealand's South Island. In addition, the two companies have signed a comprehensive service agreement covering 30 years. This secures long-term, recurring revenue for Nordex from the maintenance of the turbines. Installation of the first turbines is scheduled to begin in early 2028. Initial commissioning is planned for mid-2028.

With the order, Nordex is expanding its international presence and entering another market with attractive growth prospects. New Zealand offers interesting prospects thanks to its favourable wind conditions and the planned expansion of renewable energy. Mercury is one of the country's leading energy suppliers and has developed five of the six wind farms built in New Zealand over the past five years. Nordex intends to use the order to establish its own local structures and work with local service providers. This could enable the northern German company to expand its position in the New Zealand wind energy market over the long term and secure further orders.

SMA Solar: Chart alert and buy recommendation

Caution is warranted with SMA Solar. The shares are trading just below EUR 48 and threaten to break out of their sideways range to the downside. Positive quarterly figures could prevent this. Publication is scheduled for November 12. According to Deutsche Bank's assessment, the inverter manufacturer's revenue and profit should develop positively. SMA Solar's prospects are also positive, supported by its strong order backlog. The analysts reaffirm their Buy recommendation and raise their price target slightly from EUR 77 to EUR 78.

The latest announcement shows that the company intends to continue growing. SMA Solar has opened its new Gigawatt Factory in Niestetal near Kassel. It will produce central inverters, battery storage solutions and energy management systems for large-scale projects there in future. The technologies are used in solar farms, energy storage facilities, hydrogen projects and data centres, among other applications. According to the company, at full utilisation, the factory can produce more than 60 GW annually. SMA has invested around EUR 80 million in the site. Of this, about EUR 50 million relates to lease obligations over 20 years, and about EUR 30 million to one-off investments in production facilities and infrastructure.

With the new factory, SMA aims to benefit from the growing global demand for high-performance energy infrastructure. The increasing electrification of industry and the expansion of data centres are driving demand for technologies to integrate renewable energy and stabilise electricity grids. Over the past two years, SMA has therefore shifted its strategic focus more towards business involving large-scale energy projects.

Conclusion 

Despite the recent share price weakness, SMA Solar shares have gained 32% so far this year. From a chart perspective, however, the situation is currently critical. RE Royalties could currently offer a buying opportunity. The company update shows activity at the innovative royalty company. The share price has not yet reacted. Nordex continues to enjoy operational tailwinds, even though the share price is currently weakening.