On Thursday, Jefferies updated its outlook on Clearway Energy (NYSE:CWENa) Inc. (NYSE:CWEN), increasing the price target to $36 from $34 for the shares, while maintaining a Buy rating on the stock. The adjustment follows Clearway (NYSE:CWEN) Energy's announcement of a quarter that surpassed expectations and the introduction of its 2025 and long-term guidance, which also exceeded forecasts.
The company's recent financial performance and future projections have been positively received, especially considering the history of downward revisions in the YieldCo sector. Clearway Energy's guidance managed to outpace Street estimates despite the expected refinancing of its 2028 notes at a higher cost.
During the strategic update, Clearway Energy indicated a shift in focus towards growth after 2027, which may result in a lower payout ratio. However, the analyst anticipates that the dividend per share (DPS) will continue to be competitive with industry peers despite this strategic pivot.
Clearway Energy's robust quarter and optimistic long-term outlook have reinforced the analyst's confidence in the company's stock. The Buy rating reiteration reflects the belief that the company is well-positioned for continued performance and growth in the market.
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