UPDATE: UBS Starts Pattern Energy Group (PEGI) at Neutral

September 27, 2016 7:02 AM EDT
Get Alerts PEGI Hot Sheet
Price: $22.66 -0.74%

Rating Summary:
    11 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 23 | New: 30
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(Updated - September 27, 2016 8:08 AM EDT)

UBS initiated coverage on Pattern Energy Group (NASDAQ: PEGI) with a Neutral rating and a price target of $24. Analyst Julien Dumoulin-Smith is cautious due to the exhausting ROFO pipeline and the fact that the stock has already rallied 30% from the first quarter.

"We are launching coverage of PEGI with a Neutral rating and $24 PT, seeing shares as only trading at a modest premium to our DCF target of $20 and discount to our Yieldbased methodology of $28. While shares only trade at a modest premium to DCF value (7.3% discount rate), similar to NYLD, we emphasize this discount is appropriate as long as PEGI has a separate parent private equity sponsor. Further, we see the greater volatility associated with a largely wind portfolio and financial swaps (rather than PPAs) on some deals, we appreciate the greater financial risk vs. peers," said Dumoulin-Smith.

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 $23.34 yesterday.

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