Buy Rating for HASI: Strong Financial Performance, Strategic Positioning, and Robust Project Pipeline

Maheep Mandloi, an analyst from Mizuho Securities, reiterated the Buy rating on HASI (HASI – Research Report). The associated price target remains the same with $34.00.

Maheep Mandloi has given his Buy rating due to a combination of factors that highlight HASI’s strong financial performance and strategic positioning. The company reported better than expected revenue and adjusted earnings per share, primarily driven by a higher gain on the sale of assets, and it has maintained its guidance for adjusted EPS and DPS for 2025 and 2026. Furthermore, HASI has extended its target for an 8-10% annual growth rate in adjusted EPS through 2027, while also reducing its payout ratio, aligning with its 2030 long-term goals.
Another reason for the Buy rating is HASI’s robust late-stage project pipeline, which remains unaffected by potential changes in interest rates or the Inflation Reduction Act. Additionally, the cash yield is expected to improve as certain projects progress, and HASI benefits from higher yields in its backlog and a lower cost of debt due to a credit rating upgrade. These factors collectively reduce the company’s need for growth equity, while the price target of $34 is based on a favorable valuation compared to its peers.

HASI’s price has also changed slightly for the past six months – from $30.940 to $28.020, which is a -9.44% drop .