DAVY VIEW

Greencoat Renewables’ (Greencoat) modest Q3 net asset value (NAV) decline reflects a slight moderation in European power prices as well as lower wind resource across key markets. With both dynamics representing persistent challenges for the broader sector in recent times, the resilience of Greencoat’s performance is noteworthy. NAV remains just 2% below Dec-22 peak levels (other peers some 5-20% lower), while 2024 cash generation should equate to c.14c/share (15% of the current share price). At 91c/share, the stock is trading on 0.82x last reported NAV and a dividend yield of 7.4%.