Recent weakness in INEAre you concerned about the recent weakness in INE? Don't be. Here are recent comments from Raymond James analyst David Quezala published in the Globe and Mail on April 28:
“Boralex and Innergex have underperformed so far this year; something we attribute, at least in part, to moves in the clean energy indices and related selling pressure,” he said. “While this volatility is unfortunate, we take solace in what are generally very stable fundamentals for these companies. Of course, we certainly acknowledge that rising bond rates have also played a role in this weakness, but we maintain our view that unless bond rates continue to move materially higher, valuations appear to largely reflect this backdrop. In fact, each of INE and BLX have moved toward the midpoint of their respective trading ranges. At the end of the day, these are businesses with stable performance, strong growth outlook and a historically supportive political environment. While talk of ESG fund flows has subsided of late, we continue to expect this trend will re-assert itself, supporting valuations. Accordingly, we believe recent weakness in each case represents an opportunity to add to positions.”