Morgan Stanley cuts Spain's Solaria to 'underweight' on valuation

About this update from Solaria Energia Y Medio Ambiente, S.a.

** Morgan Stanley cuts Spanish renewable energy company Solaria's BME:SLR rating to "underweight" from "equal-weight," given current valuation and recent >80% rally** Brokerage prefers "overweight"-rated RWE, Centrica, Engie and A2A, it says in a note on Sunday** "We think the shares will now need tangible new announcements and solid execution to progress further; we see limited room for any error in execution," it says** MS expects the co's Capital Markets Day on Nov 17 to focus on business diversification and monetisation of asset portfolio via partnerships and sales to data centres** "Such a strategy makes sense, but at ~€15/sh, a lot is already priced in for a successful group transformation," it adds** But the brokerage raises price target to 13 euros/sharer from 10 euros/share, recognising Solaria's promising first transformation steps** Of 16 analysts that cover Solaria, ten rate the stock "strong buy" or "buy", three rate it "hold" and three rate the stock "strong sell" or "sell" - data compiled by LSEG

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