On Monday, TD Cowen sustained its Buy rating and $40.00 price target for Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital Inc (NYSE:HASI), a company specializing in climate solutions investments. The firm's endorsement comes with a positive outlook on the company's performance prospects.
The analyst from TD Cowen highlighted the robustness of Hannon Armstrong's business model, which focuses on asset-level investment yielding predictable cash flows. This approach is seen as a key factor contributing to the company's resilience and potential for sustained growth.
TD Cowen's analysis anticipates continued investment in clean energy, propelled by increasing power demand. The firm also notes Hannon Armstrong's improved cost of debt, facilitated by its investment grade rating and the support from Climate Change Crisis Real Impact I Acquisition Corporation (NYSE:CCH1), which is expected to bolster the company's ability to meet its 2026 financial guidance.
An attractive dividend yield, which currently stands at approximately 6%, was also mentioned as a positive aspect of Hannon Armstrong's investment profile. This yield is seen as a beneficial feature for investors seeking income-generating assets.
In summary, TD Cowen's reiterated Buy rating and $40.00 price target reflect a confidence in Hannon Armstrong's strategic investments in the clean energy sector and its capacity to deliver on long-term financial objectives. The company's strong dividend yield adds to its appeal in the eyes of the firm.
In other recent news, Hannon Armstrong Sustainable Infrastructure Capital, Inc. reported substantial financial growth in the third quarter of 2024. The company's adjusted earnings per share (EPS) rose by 8% compared to the same period last year, with new investments totaling $1.7 billion year-to-date. Managed assets saw a 14% growth to over $13 billion, indicating the company's robust financial health. Despite a reported GAAP loss due to mark-to-market impacts from power contracts, Hannon Armstrong maintains a strong liquidity position at $1.3 billion and a well-managed debt-to-equity ratio of 1.8 times.
BofA Securities recently initiated coverage on Hannon Armstrong, assigning a Buy rating to the stock with a price target of $40.00. The firm highlighted Hannon Armstrong's role in supporting decarbonization efforts across various sectors, noting its project pipeline has more than doubled since 2020 to $5.5 billion. On the other hand, RBC Capital Markets adjusted its price target on shares of Hannon Armstrong to $40.00, a slight decrease from the previous target of $41.00, but maintained an Outperform rating on the stock.
In other company news, Hannon Armstrong is preparing to refinance its 2026 and 2027 bonds, leveraging its investment-grade status. The company is targeting an annual adjusted EPS growth of 8% to 10% through 2026 and views the Renewable Natural Gas (RNG) market as a significant growth area.
InvestingPro Insights
Adding to TD Cowen's positive outlook on Hannon Armstrong Sustainable Infrastructure Capital Inc (NYSE:HASI), recent data from InvestingPro provides further context to the company's financial position and market performance.
As of the latest data, HASI boasts a market capitalization of $3.58 billion, with a P/E ratio of 15.17, suggesting a relatively moderate valuation compared to some growth stocks in the renewable energy sector. The company's revenue for the last twelve months as of Q3 2023 stood at $139.08 million, with a notable revenue growth of 14.37% over the same period.
InvestingPro Tips highlight HASI's commitment to shareholder returns, having raised its dividend for 6 consecutive years and maintained payments for 12 years straight. This aligns with TD Cowen's emphasis on the attractive dividend yield, which InvestingPro data places at 5.72%. The company's ability to sustain and grow its dividend could be particularly appealing to income-focused investors in the current market environment.
Another InvestingPro Tip notes that HASI's liquid assets exceed short-term obligations, indicating a strong balance sheet that could support the company's investment strategies in clean energy projects. This financial stability complements TD Cowen's positive view on the company's business model and its ability to generate predictable cash flows.
For investors seeking a deeper understanding of HASI's potential, InvestingPro offers 5 additional tips that could provide valuable insights into the company's prospects and market position.
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