S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Monday, Truist Securities expressed confidence in Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI), maintaining a Buy rating and a $40.00 price target. The sustainable investment firm, currently trading at $28.02, reported a strong fourth quarter, surpassing Wall Street's adjusted earnings per share (EPS) expectations by approximately 5% and exceeding Truist's own estimates by around 13%. This performance was attributed to a higher-than-anticipated realized gain on sale during the quarter. According to InvestingPro data, HASI appears undervalued based on its Fair Value analysis, with analysts setting price targets ranging from $33 to $48.
Hannon Armstrong also set ambitious targets, extending its adjusted EPS compound annual growth rate (CAGR) guidance of 8%-10% to 2027. The company, which InvestingPro analysis shows has maintained dividend payments for 13 consecutive years with a current yield of 6%, expects its dividend payout ratio to reduce to between 55%-60% by the same year. Notably, the firm closed a record $1.1 billion in new transactions in the fourth quarter, bringing the total for the year to $2.3 billion—surpassing its $2 billion target. These new investments yielded an average of over 10.5%.
Looking ahead to 2025, Hannon Armstrong has outlined a goal for new investment volumes to be slightly higher, with gains on sale falling within the range seen from 2021 to 2023. During the upcoming earnings call, Truist Securities anticipates further details from the company regarding its expansion into non-U.S. investments with existing clients and new forms of investments, as hinted at in the company's presentation slides.
The robust fourth-quarter results, combined with the forward-looking guidance and investment achievements, are expected to lead to a positive performance for Hannon Armstrong's stock. Truist's outlook suggests that the company's strategic initiatives and financial targets position it well for continued growth and shareholder returns.
In other recent news, Hannon Armstrong's fourth-quarter performance exceeded expectations, with the company projecting 8-10% compounding growth through 2027, according to Jefferies analyst Julian Dumoulin-Smith. However, Jefferies has reduced the stock target for Hannon Armstrong to $36, maintaining a Buy rating. Truist Securities also initiated coverage on Hannon Armstrong with a Buy rating and set a $40 price target. Conversely, RBC Capital Markets adjusted its price target on Hannon Armstrong to $38, citing potential impacts from high-interest rates and policy uncertainty, but maintained an Outperform rating.
Hannon Armstrong recently announced a series of executive leadership changes, promoting four long-standing team members to new roles to position itself for strategic growth. This reshuffling includes Marc T. Pangburn as the Chief Revenue & Strategy Officer and Charles "Chuck" W. Melko as the Executive Vice President, Chief Financial Officer, and Treasurer.
The company also released its financial outcomes for the fourth quarter and full year ended December 31, 2024. The earnings release provides comprehensive financial details for the specified periods, including dividend information for the first quarter of 2025. These are the latest developments for Hannon Armstrong, a company specializing in climate solutions investments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.