Cloudberry Clean Energy ASA: Investment Opportunities and Strategic Moves

NuWays AG has updated its recommendation for Cloudberry Clean Energy ASA, classifying the stock as a "Buy" with a target price of NOK 19.00. The Norwegian company, which specializes in run-of-river power production, is actively investing in digital solutions via Kraftanmelding. This move aims to automate various tasks within the hydro industry, thus improving asset returns.

As part of the investment, Cloudberry will transfer Captiva's digital business to Kraftanmelding, while its partners Elmera and Småkraft will provide NOK 20 million in equity. This will enable Kraftanmelding's expansion, with the company shares being held by Elmera (34%), Cloudberry (32%), Småkraft (8%), and the founders/employees (27%).

The investment is seen as strategic, giving Cloudberry access to numerous data that could enhance its assets. The company remains undervalued at NOK 13 per share, below its book value of NOK 16.5 per share, in spite of strong recent performance. With a solid balance sheet and low debt levels, Cloudberry’s financial position is robust.

NuWays AG highlighted potential hidden values within Cloudberry’s balance sheet, noting that divested hydro assets achieved valuations significantly above book value. The company's portfolio growth is expected to accelerate, with projections to grow its production portfolio to 500 MW by mid-2026. Additional development projects could be sold, potentially adding further value.