In a report released yesterday, Elizabelle Pang from DBS maintained a Buy rating on Brookfield Renewable Partners (BEP – Research Report), with a price target of $30.00.
Elizabelle Pang’s Buy rating for Brookfield Renewable Partners (BEP) stems from a variety of constructive factors. Pang highlights BEP’s status as one of the largest global renewable energy companies, boasting a diversified portfolio and a significant presence in North America, which positions it to benefit from the U.S. Inflation Reduction Act. Additionally, BEP’s financial health is underscored by its robust capital pool, including ample liquidity and partner capital, which supports its investment strategy and enables sustainable growth without the need for further equity issuance. Pang also notes BEP’s consistent track record of strong dividend yields and distribution growth, further bolstered by its investment-grade balance sheet and high-quality cash flows.
Looking forward, Pang reaffirms BEP’s long-term financial targets, which include a greater than 10% growth in funds from operations (FFO) per unit and a 5-9% increase in dividend payouts. The anticipated growth is attributed to contributions from recent mergers and acquisitions, as well as operational improvements, particularly within the hydroelectric segment. BEP’s strategy of reinvesting proceeds from mature assets into new growth avenues is seen as a highly value-accretive approach. Furthermore, Pang points to BEP’s potential in securing power contracts with large corporate clients, such as data centers, and other positive catalysts like the share buyback program and potential interest rate cuts in the second half of the fiscal year. Despite the risk of rising interest rates, Pang’s confidence is maintained by BEP’s predominantly fixed-rate debt and a solid investment-grade credit rating.
In another report released yesterday, Scotiabank also reiterated a Buy rating on the stock with a $30.00 price target.
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Brookfield Renewable Partners (BEP) Company Description:
Brookfield Renewable Partners LP engages in owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.. It operates through following segments: Hydroelectric; Wind; Solar; Storage and Other; and Corporate. The company was founded on June 27, 2011 and is headquartered in Hamilton, Bermuda.
Read More on BEP:
- Brookfield Renewable Reports Record Results and Announces 5% Distribution Increase
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