Truist initiates Hannon Armstrong stock with Buy, $40 target

Published 06/02/2025, 13:18
Truist initiates Hannon Armstrong stock with Buy, $40 target

On Thursday, Truist Securities began coverage on Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) with a positive outlook, assigning a Buy rating and setting a price target of $40.00 for the company’s shares. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $31 to $48, suggesting significant upside potential. The stock currently trades at an attractive P/E ratio of 14.3x, and InvestingPro analysis indicates the shares are currently undervalued.

The securities firm highlighted Hannon Armstrong’s strategic approach to investment, which focuses on long-term, post-development cycle opportunities and diversification across various segments of the clean energy sector. Truist Securities underscored the company’s lower volatility exposure to the energy transition’s driving forces. InvestingPro data reveals the company has maintained dividend payments for 12 consecutive years and boasts a healthy current ratio of 6.67x, indicating strong financial stability. Get access to over 30 more key financial metrics and insights with InvestingPro’s comprehensive research report.

Hannon Armstrong’s investment strategy encompasses a range of financing methods, including equity, debt, securitizations, and partnerships. These investments target real assets across multiple clean energy segments, with a significant focus on utility, residential, and community solar projects, utility-scale wind, energy storage, energy efficiency, and renewable natural gas (RNG).

Since 2020, Hannon Armstrong has expanded its portfolio from $2.1 billion to $6.3 billion as of the third quarter of 2024. This growth is attributed to the increasing demand for renewable energy and a supportive policy and regulatory environment. The firm has shown resilience and capability to thrive amidst varying interest rate scenarios and political landscapes, maintaining a solid 14.4% revenue growth over the last twelve months and offering an attractive dividend yield of 6%.

Truist Securities anticipates that with the expectation of a more normalized rate environment already starting to emerge and the ongoing surge in domestic power demand, Hannon Armstrong’s stock is well positioned to experience continued upside. The analyst at Truist Securities expressed confidence in the company’s potential, citing its established track record in the business as a foundation for future success.

In other recent news, Hannon Armstrong Sustainable Infrastructure Capital (HASI) has been in the limelight with several developments. RBC Capital Markets lowered its price target for HASI to $38 from $40, citing potential impacts from high-interest rates and policy uncertainty, while maintaining an Outperform rating. The firm also adjusted the earnings per share (EPS) estimate for Hannon Armstrong in 2025 to $2.62, slightly below the consensus estimate of $2.64.

On a different note, Citi analyst Vikram Bagri upgraded HASI from Neutral to Buy, setting a price target of $36.00. Bagri cited the company’s resilience to potential policy changes as a reason for the upgrade.

Meanwhile, TD Cowen named HASI as its 2025 Best Idea due to its robust business model and appealing dividend yield. The firm also maintained its Buy rating and $40.00 price target for HASI, highlighting the company’s strong dividend yield of approximately 6%.

In other company developments, HASI announced the launch of a private add-on offering of 6.375% green senior unsecured notes due 2034. The company also reported a 15% growth year-over-year as of September 30, 2024, with a portfolio yield of 8.1%. These are the recent developments for HASI.

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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