OTCQX:HEOFF - Post by User
Post by
retiredcfon May 19, 2021 8:00am
258 Views
Post# 33228512
IA Capital
IA Capital Mr. Baydoun(IA Capital) also made these target changes:
- H20 Innovation Inc. (HEO-X, “buy”) to $3.50 from $3.70. Average: $3.64.
“Performance in the Power sector has been underwhelming so far in 2021, with most equities posting negative returns on a year-to-date basis (with exceptions), reflecting a shift in investor expectations following the recent upward move in interest rates; we note that this negative performance is despite (1) the resiliency of companies’ business models(supported by contracted cash flows, with no material impacts from the COVID-19 pandemic), (2) secular tailwinds that support long-term growth (accelerating global government and corporate decarbonization objectives), and (3) continued strong inflows into sustainable funds,” he said. “Meanwhile, equities in our Infrastructure coverage universe are faring better than IPPs, primarily due to (1) expectations for accelerating near-term growth (supported by a strong economic outlook), (2) weaker relative performance in 2020, and (3) their capital structure (lower sensitivity to interest rate movements compared with IPPs). Overall, companies across our coverage universe continue to exhibit solid underlying fundamentals and strong growth outlooks; as in past instances of sharp stock price declines, we believe that the current pullback in the Power sector represents an interesting buying opportunity for longer-term investors.”