Market Overview

Here's What YieldCo Investors Are Watching This Week

Here's What YieldCo Investors Are Watching This Week

In a new report, Avondale Partners analyst Michael Morosi took a look at some of the market-moving headlines among YieldCos this week. According to Morosi, earnings will likely continue to be the market’s top concern.

“YieldCo’s have delivered generally in-line reports with constructive outlooks, reflecting the positive impact from the ITC/PTC extension, though the key uncertainty remains regarding access to equity markets,” he explained.

Related Link: The Auto Loan Market Is Beginning To Look Like 2008's Housing Bubble

Spotlight On Solar

Morosi sees Nextera Energy Partners LP (NYSE: NEP)'s $270 million-plus equity raise as a positive sign for the industry.

NextEra Energy Partners plans to use the funding toward recently announced Seiling I & II Wind Energy Centers and the acquisition of 299MW of wind projects from NextEra Energy Resources.

In other solar news, the city of Palo Alto, California has announced a 25-year deal to purchase solar power from the Wilsona Solar project at a price of $36.76/MWh.

Sunedison Inc (NYSE: SUNE) also received some good news recently when a Delaware court denied Appaloosa Management’s attempt to block SunEdison’s acquisition of Vivint Solar Inc (NYSE: VSLR).

A Few Names At Outperform

Avondale has Outperform ratings on the following YieldCos:

  • NextEra Energy Partners
  • NRG Yield, Inc. Class A (NYSE: NYLD-A)
  • Abengoa Yield PLC (NASDAQ: ABY)
  • Pattern Energy Group Inc (NASDAQ: PEGI)
  • TerraForm Global Inc (NASDAQ: GLBL)
  • Hannon Armstrong Sustnbl Infrstr Cap Inc (NYSE: HASI)

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain


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