On Friday, UBS maintained its optimistic stance on Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital Inc (NYSE: HASI), a company specializing in climate solutions, by increasing its price target to $36.00 from $33.00. The firm reiterated its Buy rating on the stock, highlighting the company's strong positioning to capitalize on the growing demand for clean energy infrastructure.
According to UBS, the persistent demand for clean energy remains robust, even amidst rising interest rates. This trend is attributed to the acceleration of electricity demand in the United States. The growth in electricity consumption, coupled with the increasing integration of renewable energy sources, is expected to expand the total market for clean energy infrastructure—a market in which Hannon Armstrong is actively involved.
UBS believes that Hannon Armstrong provides an appealing investment opportunity with relatively lower earnings volatility compared to other companies in the broader energy transition space. The firm's analysis suggests that Hannon Armstrong's stock is currently valued at 11.5 times its projected 2025 earnings per share (P/E).
Hannon Armstrong's focus on investments in energy efficiency, renewable energy, and other sustainable infrastructure projects aligns with the broader investment trends in energy transition. UBS's updated price target reflects confidence in the company's future performance and its role in the growing clean energy sector.
In other recent news, Hannon Armstrong (HASI) has formed a $2 billion partnership with KKR, each committing $1 billion to create CarbonCount Holdings 1 (CCH1). This strategic move aims to enhance capital efficiency and scalability. The company also reported over $500 million in transactions closed in Q1 2024, along with a $0.415 dividend declaration.
Meanwhile, TD Cowen has increased HASI's price target from $35.00 to $40.00, maintaining a Buy rating. This adjustment follows the company's confirmation of their earnings guidance for the years 2024 to 2026.
On another note, Hesai Group, a China-based lidar manufacturer, has initiated legal action against the U.S. government, objecting to its inclusion on a Department of Defense list suggesting connections to Beijing's military.
Hesai, which specializes in sensors for autonomous vehicles, disputes any ties to Chinese government or military influence, noting that the majority of its ownership lies outside of China. The company is seeking a court order to have its name removed from the 1260H list.
Lastly, Citi has adjusted its outlook on HASI, reducing the stock's price target to $8.30 from the previous $8.50, but maintains a Buy rating. The revision follows a reassessment of the company's sales forecast for the years 2024 through 2026, along with updated gross profit margin projections. Despite the slight reduction in the target price, Citi continues to signal confidence in the company's growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.