Hannon Armstrong stock rating reiterated by Oppenheimer on S&P upgrade

Published 12/06/2025, 13:36
Hannon Armstrong stock rating reiterated by Oppenheimer on S&P upgrade

Oppenheimer maintained its Outperform rating and $48.00 price target on Hannon Armstrong (NYSE:HASI), a $3.32 billion market cap climate solutions investor that has seen a notable 9% gain over the past week. According to InvestingPro analysis, the stock appears undervalued at current levels.

S&P upgraded Hannon Armstrong’s corporate and issuer credit ratings to BBB- on Wednesday, citing portfolio quality and growth expectations. This upgrade means all three major credit agencies now rate Hannon Armstrong as investment-grade, with Moody’s assigning a Baa3 rating since June 2022 and Fitch a BBB- rating since May 2024.

The improved credit profile positions Hannon Armstrong to maintain structurally lower credit spreads compared to its historical average, according to Oppenheimer.

On Monday, Hannon Armstrong and KKR agreed to extend their CCH1 co-investment partnership through November 2026. The companies also expanded the partnership’s investment capacity to $2.6 billion through the issuance of $592 million in fixed-rate notes.

Oppenheimer views these developments as positive support for Hannon Armstrong’s growth and financial flexibility, noting the company continues to progress toward a more capital-light investment model and recurring income mix.

In other recent news, Hannon Armstrong Sustainable Infrastructure Capital Inc. reported its first-quarter 2025 earnings, meeting analysts’ expectations with an adjusted EPS of $0.64 and surpassing revenue forecasts with $96.94 million. The company highlighted over $700 million in new investments during the quarter and reaffirmed its guidance for 8-10% annual EPS growth through 2027. BofA Securities adjusted its price target for Hannon Armstrong from $21.00 to $24.00, maintaining a Buy rating, citing the company’s strong market position and anticipated revenue growth. Oppenheimer also reiterated its Outperform rating with a $48.00 price target, acknowledging the company’s robust first-quarter performance and strategic financial management.

Despite potential tariff concerns, both BofA Securities and Oppenheimer expressed confidence in Hannon Armstrong’s ability to manage its project pipeline effectively. The company has strategically increased its liquidity and managed debt obligations, which has been commended by analysts. Hannon Armstrong’s management confirmed that its financial guidance for the full year 2025 remains largely unchanged, and the expected timeline for reaching breakeven in the second quarter of 2025 is still on track. The company’s strategic investments in renewable energy and a diversified portfolio continue to drive its robust financial health, with a portfolio value of $7.1 billion and a yield of 8.3%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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