UPDATE: Oppenheimer Starts Pattern Energy Group (PEGI) at Outperform

(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.

For an analyst ratings summary and ratings history on Pattern Energy Group click here. For more ratings news on Pattern Energy Group click here.

Shares of Pattern Energy Group closed at $24.91 yesterday.

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