UPDATE: BMO Capital Markets Initiates Coverage on Pattern Energy on Multiple Positive Factors

In a report published Wednesday, BMO Capital Markets analyst Ben Pham initiated coverage on Pattern Energy Group PEGI with an Outperform rating and $26.50 price target. In the report, BMO Capital Markets noted, “Pattern Energy Group (PEGI) is a renewable power producer that owns and operates contracted power assets, with a focus in North America. PEGI completed its IPO on October 2, 2013...We are initiating coverage of PEGI with an Outperform rating and US$26.50 target price due to its attractive and visible dividend growth profile and stable cash flows. Our target price is based on the average of applying an 11.5x EV/EBITDA multiple to our 2015E adjusted EBITDA estimate and a discounted free cash flow analysis through 2024E.” Pattern Energy Group closed on Tuesday at $23.14.