On Monday, Clearway Energy (NYSE:CWENa) Inc. (NYSE:CWEN) saw its price target increased to $30.00 from $29.00, while its stock rating remained a Buy. This adjustment comes in the wake of the company's first-quarter Cash Available for Distribution (CAFD) surpassing expectations and the reaffirmation of its 2024 guidance.
The company is on course to allocate the remaining thermal proceeds by the end of 2024. Additionally, management has enhanced the visibility of the company's growth prospects post-2026 by securing Renewable Attributes (RA) contracts that extend from 2027 to 2030 for its natural gas assets.
Clearway (NYSE:CWEN) Energy, along with Clearway Energy Group (CEG), is actively assessing the next wave of investments. The potential projects include hybridization or repowering of existing assets, which are being considered as part of the company's growth strategy.
The analyst from Roth/MKM highlighted the company's strong position, noting, "CWEN delivered a Q1 CAFD beat and reiterated 2024 guidance. The company appears on track to allocate remaining thermal proceeds by YE'24, and management improved visibility into growth beyond 2026 by securing additional 2027-2030 RA contracts for the natural gas assets."
The analyst also emphasized the possibility of sustained growth, stating, "CWEN and CEG are evaluating the next phase of investments, which include opportunities for hybridization or repowering of existing assets. We see increased potential for an extension of DPS growth into 2027 this year and reiterate our Buy. PT to $30 from $29."
InvestingPro Insights
Clearway Energy Inc. (NYSE:CWEN) has been the focus of investors after its first-quarter performance, and recent data from InvestingPro amplifies this interest. With a market capitalization of $5.32 billion and a notable price-to-earnings ratio of 38.08, CWEN's financial stature is noteworthy. The company's revenue over the last twelve months as of Q1 2024 stands at $1.289 billion, with a gross profit margin impressively high at 61.91%, indicating strong profitability from its operations.
InvestingPro Tips suggest that CWEN's stock may be in overbought territory, which could be a signal for investors to watch for potential volatility or consolidation. On the positive side, the company has seen a significant return over the last week, with a 9.38% price total return, and a robust 31.16% return over the last six months, indicating strong recent performance. Additionally, CWEN pays a significant dividend to shareholders, with a current yield of 6.06% and a dividend growth of 9.53% over the last twelve months as of Q1 2024, which could appeal to income-focused investors.
For those seeking more detailed analysis and additional insights, InvestingPro offers a range of tips, with 12 more listed on their site. To access these insights and make informed investment decisions, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.