09:40 AM EDT, 09/22/2021 (MT Newswires) -- Tudor, Pickering and Holt on Wednesday reiterated its buy rating on the shares of Brookfield Renewable Partners (BEP-UN.TO, BEP) with a US$44.00 target price after the renewable-power company staged its annual investor day presentation.
"Brookfield Renewable traded off marginally yesterday after hosting an investor day in New York," analyst Matt Taylor said in a note. "Overall, there was limited new information disclosed though several key themes were prevalent: 1) Global decarbonization has significantly accelerated in the last 18 months, 2) ~75% of global emissions are attributable to energy and power generation presenting a multi-decade opportunity set, 3) The 31GW development pipeline (unchanged) is diversified by geography and technology increasingly backstopped by corporate demand, 4) Scale, operating expertise, and global reach have been key differentiators in adding to the development backlog and helping protect equity return guidance of 12-15% despite sector wide supply chain pressure, 5) No reliance on common equity issuances to fund an increased annual equity deployment target of $1.0-1.2B (from $0.8-1.0B), and 6) Messaging on FFO/sh growth over the next five years was more bullish at 10+% per unit annual growth rate versus previous commentary of 6-11%. The company's premium valuation remains a key hang up for investors, though execution of a relatively large development pipeline targeting attractive returns should sustain interest as the sector faces increased competition requiring companies to differentiate besides cost of capital. Maintain Buy."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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