Oppenheimer Remains Bullish on Hannon Armstrong (HASI) As Shares Trade Down

Oppenheimer reiterated an Outperform rating and $26.00 price target on Hannon Armstrong (NYSE: HASI) as shares trade down 21% since September 7th.

Analyst Noah Kaye commented, "HASI shares are off 21% since September 7, vs. the S&P 500 up 1.1%. We see the shares' outsized move relative to other cleantech yield vehicles as partly due to investor concerns on REIT eligibility status, following Treasury’s finalization of regulations defining real property. We believe these concerns are overdone, for five reasons: 1) a leading REITs-specialized legal firm has opined that HASI likely complies with new regulations; 2) its REIT status likely goes unchallenged until at least 2018; 3) 2015 dividend exposure would have been 8-9%, assuming no change in HASI's investment strategy; 4) its flexible business model enables portfolio rebalancing among asset classes; and 5) current real estate-focused fund ownership appears limited, reducing turnover risk. We reiterate our Outperform rating/$26 PT."

For an analyst ratings summary and ratings history on Hannon Armstrong click here. For more ratings news on Hannon Armstrong click here.

Shares of Hannon Armstrong closed at $19.53 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Morgan Stanley Out Positive on Top Pick TSM (2330:TT) (TSM): 'We believe TSMC will pass through additional costs to customers'
• HSBC Upgrades Johnson & Johnson (JNJ) to Buy, 'Steady outlook, low expectations'