ATOME (AIM:ATOM) this week agreed a deal with a multilateral development bank, securing funding for a feasibility study on a 300MWp solar PV project in Paraguay, but analysts at SP Angel note that this as diversification and a bit of a sideshow; compared to the primay goal at the Villeta project.
Indeed, SP Angel flagged that the work will only proceed once the company resolves its stalled Power Purchase Agreement (PPA) for Villeta Phase 1.
SP Angel, which provides corporate broking services to ATOME, in a note, repeated a Buy rating and 170p price target.
The solar project sits close to its Villeta green fertiliser plant, which remains the company's core focus.
In its note, the stockbroker described the solar project as a potential near-term diversified income stream, envisaging an industrial park built around solar and battery storage capitalising on trade generated by the fertiliser facility.
But the near-term story remains the standoff with Paraguay's state electricity distributor ANDE over the 145MW Villeta Phase 1 PPA.
The state-backed company and the process is the gatekeeper to the fully funded project, which would otherwise be ready to start construction immediately.
ATOME's shares remain suspended, pending publication of its 2025 audited annual accounts, with the company expecting to update the market by the end of August.
