On Friday, Baird increased its price target on shares of Hannon Armstrong (NYSE:HASI) to $47.00, up from the previous target of $36.00. The firm continues to give the stock an Outperform rating. The adjustment follows a period of engagement with the company's management, which has bolstered Baird's confidence in the renewable energy investment firm's prospects.
According to Baird, Hannon Armstrong is well-positioned to benefit from a variety of positive factors currently impacting the sector. These include recent cuts to interest rates and a robust demand for financing of renewable energy projects. Additionally, the company's outlook is supported by the visibility provided in part by the Inflation Reduction Act (IRA) and a recent upgrade to Investment Grade status for the firm's corporate issuer rating.
The analyst at Baird expressed a strong conviction that Hannon Armstrong is the premier choice for investors looking to engage with the renewable energy sector. This sentiment is based on the company's performance and the strategic advantages it currently enjoys.
The business's growth trajectory is also promising, with Baird expressing confidence in Hannon Armstrong's capability to achieve or surpass its target of 8%-10% compound annual growth rate (CAGR) in earnings per share (EPS) over the next three years. This projection is seen as an indicator of the company's strong financial health and its potential for continued success in the market.
The positive outlook and the raised price target reflect Baird's view that Hannon Armstrong's stock is poised for further growth, backed by solid fundamentals and favorable market conditions.
In other recent news, HA Sustainable Infrastructure Capital reported strong second-quarter results for 2024, with a 19% year-over-year growth in adjusted EPS and a 16% increase in adjusted net investment income. The company also confirmed its guidance for an 8-10% growth in adjusted earnings per share from 2024 to 2026.
In line with these developments, HA Sustainable Infrastructure Capital expanded its credit facility, transitioning the obligations from the original borrowers to the company itself, thus enhancing its capital structure. Analysts from Jefferies and RBC Capital initiated coverage on the company with a Buy and Outperform rating respectively, citing the company's potential for compounding growth and resilient business model.
These recent developments also include the company's strategic partnership with KKR in their CCH1 $2 billion initiative and an increase in its investments in renewable energy, reaching 10 gigawatts in solar and wind capacity, and 6 million MMBTUs in renewable natural gas projects. As a result, the company's managed assets have seen a notable increase of over 80% since 2020, reaching $13 billion by the end of Q2 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.