Downgraded ! A group of equity analysts reduced their target prices for shares of Northland Power Inc. (NPI-T) following Tuesday’s Investor Day event.
“Overall, NPI’s investor day provided a solid snapshot of its strategy and growth,” said Desjardins Securities’ Bill Cabel. “We reiterate our Top Pick rating, given the significant identified pipeline (6.5 net GW), of which we believe there is high probability today that 75 per cent of the projects will be built out by 2030. The entire identified pipeline would provide 230-per-cent growth vs current installed capacity levels. Much of this growth was known and the Hai Long update was underwhelming.”
Mr. Cabel cut his target to $51 from $52, keeping a “top pick” rating. The average is $45.94.
Others making changes include:
* ATB Capital Markets’ Nate Heywood to $50 from $52 with an “outperform” rating.
“Overall, the investor day focused on the Company’s current growth portfolio (more than14 GW) and the robust set of current opportunities, largely dominated by the offshore pipeline (approximately12 GW),” said Mr. Heywood. “Additionally, the presentation highlighted a sustainable funding strategy which will utilize non-recourse project level debt, partnership equity, NPI equity, green corporate debt and partial asset sell-downs. The asset sell-down strategy is a unique approach from NPI, which should offer more favourable project returns.”
* CIBC’s Mark Jarvi to $42 from $43 with an “outperformer” rating.