The renewable energy sector has faced significant challenges in the past year, as reflected in the lower stock prices of major players such as Clearway Energy (CWEN), Brookfield Renewable (BEP), NextEra Energy (NEP), and Atlantica Sustainable Infrastructure (NSD:AY). These companies have been particularly vulnerable to the impact of higher interest rates on yield-sensitive investments, resulting in a decline in their stock prices compared to a year ago. In addition, Atlantica has been facing the added challenge of financial struggles by its main shareholder, Algonquin Power & Utilities (AQN), which may lead to the offloading of its stake in the company. Despite these difficulties, Atlantica is pursuing a strategic review that includes developing and constructing its own assets, with a significant pipeline of renewable energy assets and storage in North America.
Analyzing Atlantica Sustainable Infrastructure’s Financial Results
Atlantica Sustainable Infrastructure (NSD:AY) has been affected by lower stock prices due to the impact of higher interest rates on yield-sensitive investments, and the financial struggles of its main shareholder, Algonquin Power & Utilities. The company is currently undergoing a strategic review, which could mean selling the entire company or finding a new sponsor. Atlantica plans to develop and construct its own assets, with a pipeline of ~2 GW of renewable energy assets and ~5 GWh of storage, mostly in North America. Atlantica financial results for the year were slightly disappointing, with cash available for distribution growing only about 5.5% in 2022. Atlantica’s corporate balance sheet appears in good shape, with leverage of 3.4x net corporate debt to CAFD pre-corporate debt service. For 2023, the company expects CAFD to be in the range of $235 million to $260 million, with adjusted EBITDA in the range of $790 million to $850 million. The company appears to have hedged most of the risk factors affecting its CAFD, but the biggest factor that will influence whether the company delivers CAFD closer to the high-end or the low-end of its guidance is the weather. With a recent share price of $28.65 and CAFD of $2.07 in 2022.
Atlantica Sustainable Infrastructure Stock Analysis
Analysts have provided their forecasts for Atlantica Sustainable Infrastructure PLC stock, with an average target price of USD 32.17 over the next 12 months. The company’s average analyst rating is currently “Hold,” with Stock Target Advisor’s own analysis indicating a “Bullish” outlook based on 5 positive signals and 1 negative signal. At the last market close, the stock price for Atlantica Sustainable Infrastructure PLC was USD 28.45, representing an increase of 4.98% over the past week and 5.88% over the past month, but a decline of 19.18% over the past year.
Clearway Energy Inc. Stock Analysis
Three analysts have provided their forecasts for the future of Clearway Energy Inc Class C stock, with an average target price of USD 38.00 over the next 12 months. The average analyst rating for Clearway Energy Inc Class C is Buy. Stock Target Advisor, which bases its stock analysis on 4 positive signals and 1 negative signal, is also Bullish on Clearway Energy Inc Class C. As of the latest market close, Clearway Energy Inc Class C’s stock price was USD 31.42, reflecting a decrease of -0.44% over the past week, -4.53% over the past month, and -6.38% over the past year.
Brookfield Renewable Partners Stock Analysis
According to forecasts by six analysts, Brookfield Renewable Partners LP’s average analyst target price for the next 12 months is projected to be USD 36.86, indicating a strong buy rating. Additionally, Stock Target Advisor’s analysis of Brookfield Renewable Partners LP is bullish, as it identifies 4 positive signals and 1 negative signal. The company’s most recent closing stock price was USD 27.31, reflecting a 3.80% increase over the past week, but a 1.59% decrease over the past month and a significant 26.57% decrease over the last year.
Nextera Energy Partners Stock Analysis
According to the forecasts of 12 analysts, the average target price for Nextera Energy Partners LP over the next 12 months is USD 85.43, with an average analyst rating of Strong Buy. Stock Target Advisor’s own analysis of the company’s stock is also Very Bullish, based on 3 positive signals and 0 negative signals. As of the last closing, Nextera Energy Partners LP’s stock price was USD 67.24, reflecting a weekly increase of +1.63%, but a monthly and yearly decrease of -7.75% and -16.10%, respectively.
Algonquin Power & Utilities Corp Stock Analysis
According to 10 analysts, Algonquin Power & Utilities Corp’s average analyst target price over the next 12 months is forecasted to be USD 11.18, with an average analyst rating of Buy. Stock Target Advisor’s own stock analysis of the company is Slightly Bullish, based on 3 positive signals and 2 negative signals. As of the last closing, Algonquin Power & Utilities Corp’s stock price was USD 7.73, having increased by +0.52% over the past week and +4.32% over the past month, but declined by -47.41% over the last year.
