ATOME has had a price target of 181p and 'buy' recommendation reiterated by house broker Liberum following the appointment of AECOM to oversee its Villeta project in Paraguay.
The AIM-listed group will leverage AECOM’s multi-disciplinary resource pool and significant experience in delivering large-scale projects ahead of first production by 2025.
Other large-scale projects in Paraguay and Iceland, in aggregate being in excess of 350MW, are also progressing in line with expectations
Liberum added that given the significant issues in energy and food security where green hydrogen and green ammonia can play a key role, ATOME’s investment case offers investors a compelling entry point into an exponentially growing market.
In the broker’s view, Liberum has a first-mover advantage in two strategically important geographies with the next key valuation catalyst to progress FEED (design) to achieve FID status in the VIlleta project.
“At which point, ATOME will have access to a plethora of corporate and or debt/infrastructure opportunities to develop its position to generate transformational medium-term returns.
“On this basis, it is likely that the two current geographical projects will be scaled further to include further phases in the future, and ATOME will also reserve the optionality to increase its footprint to other countries which we fully expect the company to do.”
Shares eased 2% to 112.5p.