FBR Capital Starts 8point3 Energy Partners LP (CAFD) at Outperform

FBR Capital initiates coverage on 8point3 Energy Partners LP (NASDAQ: CAFD) with a Outperform rating and a price target of $15.00, saying shares should trade closer to an 8.3% forward dividend yield.

Analyst Carter Driscoll commented, "We are initiating coverage of 8point3 Energy Partners LP (CAFD) with an Outperform rating and a 12-month price target of $15.00 per share. 8point3 is a fairly simple story: a Yield Co. that focuses on solar projects and is almost exclusively based in the U.S. The company was established to own and acquire long-term and largely contracted cash flows in order to pay a growing dividend. Growth is driven by the drop-down of solar energy projects—primarily utility-scale and commercial & industrial (C&I) in size—from its two sponsor companies, First Solar and SunPower. Despite recent restructuring initiatives incurred by these two sponsors, we consider both to be high-quality solar asset developers, and we believe the long-term development pipeline is solid. We also think CAFD shares trade at an unjustified premium (trading at a premium on a dividend yield basis) and believe 8point3 is a solid way to gain exposure to solar markets."

For an analyst ratings summary and ratings history on 8point3 Energy Partners LP click here. For more ratings news on 8point3 Energy Partners LP click here.

Shares of 8point3 Energy Partners LP closed at $12.94 yesterday.

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