UPDATE: Oppenheimer Starts Pattern Energy Group (PEGI) at Outperform
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- China Oceanwide to Acquire Genworth Financial (GNW) for $2.7B
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
(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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- UPDATE: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- KLA-Tencor (KLAC) PT Raised to $85 at Cowen
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!