Greencoat Renewables

NAV performance indicative of differentiated model

  • Sectors : Energy Transition
  • Companies : Greencoat Renewables

Ratings and price correct at time of issue.

  • Greencoat Renewables

    Closing Price: 114c

  • RATING 24/08/17

  • PREVIOUS RATING N/A

DAVY VIEW

The modest increase in Greencoat’s Q1 net asset value (NAV) demonstrates how the company is different to its peers and why the stock is an attractive investment opportunity in the current climate. Wind output for the period was 16% ahead of budget; there is no cyclical power price weakness to be concerned about; and the group has confirmed its first quarterly dividend for 2020 (equating to a 5.4% yield on an annualised basis). With 97% of output contracted out to 2027, we expect its near-term and medium-term performance to remain along similar lines. Ample balance sheet capacity and strong deployment of capital to date also suggest that its growth is well assured. We reiterate our ‘Outperform’ recommendation.

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Apr 29 2020, 13:20 IST/BST

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