This analyst likes Polaris Renewable right now

Beacon Securities analyst Kirk Wilson says Polaris Renewable Energy (Polaris Renewable Energy Stock Quote, Chart, News, Analysts, Financials TSX:PIF) is moving closer to entering Mexico, a development that could materially expand the company’s generating capacity.

In a June 9 update, Wilson maintained his “Buy” rating and $20.00 target on Polaris. His target is based on 7.5 times his 2027 EV/EBITDA forecast.

Polaris said all three projects it submitted under a request for proposal were selected by Mexico’s Secretary of Energy and the Federal Electricity Commission under the first national competitive selection process for the CFE Mixed Development Program. The projects now move to final contract negotiations with definitive agreements expected by the end of July 2026.

The projects include 250 MW of solar generation capacity and 180 MWh of battery energy storage systems in Mexico.

“To put this opportunity into perspective, PIF currently has 182 MW of power generation capacity across its portfolio in six Latin America and Caribbean countries,” Wilson said. “As such, this foray into Mexico, if approved, represents a major increase in capacity for the company.”

Polaris plans to provide details on expected capital costs and construction timelines once agreements with CFE are finalized.

“We view this progression in Mexico as positive as it represents a potential major increase in renewable power generation for PIF, although it is likely a couple of years before these projects are operational,” Wilson said. “Adding Mexico to the portfolio builds on PIF’s major expansion in Puerto Rico.”

Wilson expects Polaris to generate Adjusted EBITDA of $52.6-million on revenue of $76.8-million in fiscal 2026, improving to Adjusted EBITDA of $57.9-million on revenue of $81.8-million in fiscal 2027.

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