Post by
BayWall on Jan 31, 2022 11:08am
Then the optimists
The Globe's David Leeder (January 28, 2022) writes that Mr. Baydoun recommends considering Northland Power, which he rates "strong buy." He cut his share target to $47 from $50. Analysts on average target the shares at $46.87. Mr. Baydoun says in a note: "Overall, we view Northland Power as the best investment vehicle for investors to gain exposure to the offshore wind investment theme. It offers investors an attractive mix of (1) stable cash flows from contracted power assets (more than 2.5GW net in operation, 10-year weighted average contract term),(2) strong potential long-term FCF/share growth (primarily driven by offshore wind projects), (3) longer-term potential upside from organic development activity and accretive M&A, and (4) an attractive dividend profile. We expect Northland to successfully achieve significant milestones on its offshore wind growth prospects in 2022 (particularly in Taiwan), which should further derisk these initiatives and allow the company to move forward with the next phase of the projects."
Comment by
Vega1357 on Jan 31, 2022 11:30am
I can't argue with the fact that NPI is an excellent company, but I think that would happens regarding inflation and interest rates in the next few months will be the most important consideration. With there being considerable uncertainty here, I think it would be wise to raise cash on rallies.