WEG Is Investing in Several New Projects to Remain a Leader in Solar Energy, According to Bank of America

Bank of America States That WEG’s Solar Product Sales Have Grown Significantly, and Mentions the Company’s Capacity

Bank of America stated that the solar product division has been one of WEG’s fastest-growing businesses in recent years. The average annual revenue growth for solar energy was 160%, according to estimates from Bank of America.

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The bank estimates that solar energy, in domestic revenue for generation, transmission, and distribution, should now represent around 45%, compared to 5% in 2017.

According to the Bank of America report, relying solely on WEG’s current product portfolio to project future sales significantly underestimates long-term revenue.

The Growth of WEG’s Solar Product Sales

Bank of America reiterated the buy recommendation with a target price of R$ 96. The stock was traded on B3 at stability, at R$ 76.11, but in one year has accumulated an appreciation of 90%, having exceeded more than 100% in January.

Thus, WEG’s solar energy segment sales were 57% above the average annually over the last three years and represented 34% of total revenue, confirming how this giant growth has been crucial for the company’s overall performance.

According to Bank of America, WEG is in a great position to remain a leader in the solar energy segment, thanks to its national network and customer profile.

The bank also states that the company’s strong execution history in the energy sector reinforces its confidence that WEG has the right strategy and product portfolio to adequately explore the growth opportunities offered by renewable energies.

About WEG

Founded on September 16, 1961, originally known as Eletromotores Jaraguá, the company later changed its name to WEG, in reference to the initials of its founders. Today, this name is recognized worldwide as one of the largest manufacturers of electrical equipment.

Initially, the company produced only electric motors, and starting in the 1980s, it began producing electronic components, industrial automation products, power and distribution transformers, liquid and powder paints, and electrical insulating varnishes. The company established itself not only as a manufacturer of motors but also as a supplier of complete industrial electrical systems.