Hardly worth the effort. GLTA
Credit Suisse’s Andrew Kuske lowered his Northland Power Inc. target to $46 from $46.50, keeping an “outperform” rating. The average is $45.13.
“We maintain a positive bias on NPI’s overall exposure and ability to surface further value from the existing asset base – let alone some future prospects,” said Mr. Kuske. “The transaction with Gentari provides a good starting point, however, we believe various other levers can be pulled to generate greater value ... Given NPI’s partners in Poland and Taiwan we see broader potential for the convergence of offshore wind and green hydrogen-related efforts on a longer-term basis – something that is also not in our financial forecasts.
“For NPI, we focus on three areas: (1) outstanding options with a view of several recent transactional marks that create farm down flexibility; (2) with Orsted’s recent FID in Taiwan, some of the questions around Hai Long should begin to dissipate with greater clarity around returns, costs and schedule; and, (3) dealing with the duration dichotomy. Rather positively, the farm down flexibility creates several strategic options that can raise questions about overall business direction.”