Oppenheimer Remains Bullish Following 8point3 Energy Partners' (CAFD) 3Q Report
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Oppenheimer reiterated an Outperform rating and $20.00 price target on 8point3 Energy Partners LP (NASDAQ: CAFD) following the company's 3Q earnings report. CAFD posted 3Q16 revenue of $26.1M, net income of $15.9M, adjusted EBITDA of $32.9M, and CAFD of $24.1M vs. Street estimates of + $23.3M, +$11.9M,+$26.5M, +$21.9M.
Analyst Colin Rusch commented, "CAFD reported solid results while indicating it would acquire a 49% stake in Henrietta for $134M and expects it to generate an average of $10.9M annually in cash available for distribution (CAFD). We note this pricing reflects an annual return of 8.1%, a 170bps spread to current dividend yield of 6.4%, suggesting acquisitions can be funded with equity at materially accretive levels. The company also raised EBITDA guidance for 2016 by 8% and CAFD guidance by 4% and believes underwriting criteria of P70 support limited risk to cash flows. We reiterate our Outperform rating and maintain our PT of $20, noting improved likelihood of cash flow growth with current asset pricing."
Shares of 8point3 Energy Partners LP closed at $15.45 yesterday.
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