UPDATE: Oppenheimer Starts Pattern Energy Group (PEGI) at Outperform
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(Updated - September 8, 2016 9:54 AM EDT)
Oppenheimer initiated coverage on Pattern Energy Group (NASDAQ: PEGI) with an Outperform rating and a price target of $36. Analyst Colin Rusch sees Pattern Energy as having a strong ROFO list and pipeline of potential assets with an experienced, sophisticated sponsor, and a strong technical team.
"We expect PEGI to grow its dividend to $1.96 by 2018. In our dividend discount model, we then estimate 4.5% short-term annual dividend growth through 2021, and long-term annual growth of 2% thereafter. Using a 7.9% required rate of return, we arrive at an intrinsic value of $36 per share. We see PEGI as having a strong ROFO (right of first offer) list of projects and pipeline of potential assets with an experienced, sophisticated sponsor and a strong technical team, which we believe bode well for consistent accretive growth," said Rusch.
Shares of Pattern Energy Group closed at $24.91 yesterday.
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