UPDATE: KeyBanc Capital Markets Initiates Coverage on Pattern Energy Group with Buy Rating, $34.50 PT on Favorable Outlook

In a report published Monday, KeyBanc Capital Markets analyst Paul T. Ridzon initiated coverage on

with a Buy rating and $34.50 price target. In the report, KeyBanc Capital Markets noted, “We are initiating coverage of Pattern Energy Group Inc. (PEGI-NASDAQ) with a BUY rating and $34.50 price target as we view the business and industry favorably given the Company's focus on renewable energy projects. Currently, we see a disconnect between PEGI's valuation and its peer group given that we believe investors are overly discounting its management team's expertise, its relationship with Pattern Development, and its ROFO portfolio when comparing the Company to its peers. At the current valuation, we believe shares are at attractive levels given the Company's risk profile. We believe investors should be BUYERS of PEGI shares as we view current levels are at an attractive entry point. In our view, we believe investors of PEGI are well positioned to benefit from positive headline news as the Company grows its ROFO portfolio and as the Company executes on additional project drop-downs. Lastly, we view monetary policy more favorably as we believe Federal Reserve Chairwoman Janet Yellen has been very forthcoming on her intentions around monetary policy with no imminent changes.” Pattern Energy Group closed on Friday at $32.30.