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On Tuesday, Stifel analysts adjusted their stance on Pantheon Infrastructure PLC (PINT:LN), downgrading the stock from a Buy to a Hold rating while slightly increasing the price target to GBP1.10 from GBP1.06. The revision comes after a notable surge in the company’s share price over the last year.
Stifel cited several reasons for the initial positive rating, including the company’s progression beyond the initial investment phase, known as the J-curve, robust net asset value (NAV) growth with a total return of 14.3% in 2024, and a strong balance sheet. The analysts also noted that Pantheon Infrastructure’s NAV had been positively influenced by the rising share price of Constellation Energy (NASDAQ:CEG), which is in the process of acquiring Calpine, Pantheon’s largest investment, representing 15% of its NAV as of December 31, 2024.
Despite these positive developments, Stifel highlighted that the share price appreciation has led to a narrowing discount to NAV—around 10%—and a decrease in the dividend yield to 3.9% from 5.3% a year ago. In light of these changes, the firm believes that the stock now holds a fair value at 110 pence, only slightly above the previous target of 106 pence, prompting the downgrade to a Hold rating.
The Stifel analyst’s commentary reflects a cautious stance on Pantheon Infrastructure’s future stock performance, given the recent price increases and the impact on the investment’s yield. As the market processes this new information, investors will be watching to see how Pantheon Infrastructure’s stock responds to the updated analysis and adjusted expectations.
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