STOCKS NEWS EUROPE-Acciona up as valuation eclipses weak Q1

Acciona (ANA.MC) shares gain 1.9 percent as investors focus on the company's valuation after its lacklustre first quarter results on Wednesday.

Analysts agree that Acciona is trading at a discount to peers, but differ as to whether it is the group's renewable energy or non-energy assets which are being undervalued.

"Acciona's share price currently reflects the equity value of the renwables division. In other words the non-energy divisions are not priced in," Credit Suisse says in a note to clients on Wednesday.

Acciona said installed generation capacity increased 18.7 percent in the first quarter to 4,592 megawatts from a year earlier, reinforcing its position as one of the top four renewable energy generators in the world.

"Acciona is trading at a significant discount to peers like Iberdrola Renovables (IBR.MC) or EDP Renovaveis (EDPR.LS) based on price per installed megawatt of renewable capacity," a Madrid based equities analysts says.

The analyst notes Acciona is also a major wind turbine manufacturer, and deserves at least some of the sharp gains in valuations seen in larger sector peers like Gamesa (GAM.MC) and Denmark's Vestas VSW.CO over the last two weeks.

For more click on [ID:nLD718295]. Acciona will hold a conference call at 1000 GMT.

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