Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
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The brokerage's bullish stance is driven by core business growth and continued investor demand for low-risk exposure to the alternative energy space.
"We expect 9.8 percent pa growth in transaction volumes to drive 10.3 percent pa 2017–19E growth in core EPS," analyst Jon Windham wrote in a note.
Windham sees Hannon's investment portfolio growing from $1.4 billion in the second quarter of 2016 to $3.8 billion by the end of 2019. The company targets about 30 percent equity funding, which implies over $200 million–$250 million in equity raises annually.
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The analyst also expects renewable and energy efficiency investments to grow by 9–12 percent pa between 2016–2020, given "declining renewable costs and government-supported efficiency policies."
"In our view, continued HASI equity offerings could spark a virtuous cycle in which a higher market capitalization and increased share liquidity drive a potential share re-rating, given a growing investor pool," Windham continued.
That said, Windham considers a key downside risk to the firm's bullish stance is Hannon's "exposure to changes in government support for renewable energy and energy efficiency." However, the analyst said key programs such as PACE and state RPS goals are likely to be maintained and enhanced as governments move to meet various climate change goals.
At time of writing, shares of Hannon were down 0.28 percent at $24.82.
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New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.