Capstone Infrastructure Corp T.CSE.PR.A

Alternate Symbol(s): CPOIF

Utilities Utilities - Diversified

Capstone Infrastructure Corp is a Canada-based company, which is engaged in owning and operating infrastructure businesses. The Company operates as a power producer that is focused on providing clean, renewable energy to homes and businesses across North America. The Company develops, owns and operates thermal and renewable power generation facilities with a total installed capacity of 570 megawatts across 28 facilities in Canada. It operates wind, hydro, solar, biomass, and natural gas power plants. Its operated facilities include Amherstburg Solar Park, Cardinal Power, Dryden, Erie Shores Wind Farm Fitzpatrick Mountain, Ganaraska, Glace Bay, Glen Dhu, Goulais Wind Farm, Grey Highlands Clean Energy, Grey Highlands, Hluey Lakes, Sechelt, Springwood, Whittington, Napier and Sumac Ridge wind.

TSX:CSE.PR.A - Post by User

Capstone Infrastructure Corp

Bullboard Posts

Post by anon314on Sep 18, 2015 8:37pm

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Post# 24117675

RBC and Veritas Price Targets

Capstone Infrastructure Corp. - $3.02 – A Small Company with Big Upside
Veritas: Initiating Coverage with Buy (PT $5); RBC CM: Outperform (PT $4)
An ongoing regulatory proceeding in England has investors concerned that distributions from its stake in a water utility (Bristol Water plc) could decline sharply, forcing CSE to cut its dividend for the second time in just over three years. Assuming no distributions from Bristol, Veritas believe CSE’s cash payout ratio could trend well above 100% through F17, generating an aggregate cash flow shortfall of $35 million. Beyond F17, cash flow from new wind farms, lower development expenditures and reduced preferred share dividends should alleviate cash flow strain with its payout ratio declining comfortably below 100% by 2020. In addition to the above, Veritas has a number of other funding options, leading Veritas to believe that CSEs dividend is sustainable. With a yield of 10% and a valuation that ascribes almost no value to Bristol, Veritas initiates coverage with a Buy and a PT of $5.