Julien Dumoulin Smith, an analyst from Jefferies, maintained the Buy rating on HASI (HASI – Research Report). The associated price target was lowered to $33.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that position HASI favorably in the current market environment. Despite recent pressures on the renewable sector, HASI’s investment portfolio remains robust, particularly due to its focus on hard assets, which are less affected by concerns related to the Inflation Reduction Act (IRA) and tariffs. The company’s $6.6 billion portfolio is considered largely derisked, with tax credits already monetized and reflected in project economics, providing a stable financial base.
Furthermore, HASI’s strategy of diversifying across various technologies beyond traditional wind, solar, and renewable natural gas (RNG) is seen as a positive move to mitigate pipeline risks. While there are concerns about market volatility and rising treasury rates, which could lead to equity dilution and increased debt costs, HASI’s focus on new project yields and its long-term strategy to leverage partner capital over its own are expected to support its growth. The company’s ability to maintain a higher yield on new projects, even as rates rise, is crucial to sustaining its financial health and justifies the Buy rating.
According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 1.9% and a 51.92% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Alliant Energy, and Ameren.
In another report released on April 1, Truist Financial also reiterated a Buy rating on the stock with a $40.00 price target.