Mizuho Securities has initiated coverage on Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital Inc (NYSE:HASI), issuing a Buy rating and projecting a significant upside potential for the stock. With a target price range between $34.68 and $52.50, the firm anticipates a possible gain of over forty percent from HASI's last reported close.
Hannon Armstrong, a company specializing in sustainable infrastructure investments, is poised for considerable financial growth. Revenue projections indicate an increase of nearly thirty-five percent, reaching $164 million, with earnings per share estimated at $2.26.
The investment community has shown increased interest in HASI, with six hundred and one institutional entities now holding positions in the company. These holders possess over one hundred and twenty million shares, marking an expansion exceeding seventeen percent over recent months.
Key investors have made notable adjustments to their holdings in HASI:
- Wellington Management Group LLP remains a major investor with over ten million shares, despite reducing their stake by over six percent.
- T.Rowe Price continues to hold close to five million shares after cutting their investment by eleven percent.
- Amundi has increased its stake by nineteen percent, now owning nearly five million shares.
- Handelsbanken Fonder AB scaled back their position to approximately three million shares, an eighteen percent decrease.
- The Vanguard Fund (VTSMX) has upped its share count by thirteen percent, reaching over three million shares.
The average portfolio weight for HASI among these funds is a modest 0.21 percent. However, market sentiment expressed through the put/call ratio appears bearish at 1.24, suggesting skepticism among some traders about the stock’s future trajectory.
InvestingPro Insights
As Mizuho Securities shines a spotlight on Hannon Armstrong Sustainable Infrastructure Capital Inc (NYSE:HASI) with a bullish outlook, real-time data and InvestingPro Tips provide additional layers of insight. Notably, HASI has a track record of raising its dividend, having done so for 5 consecutive years, and analysts expect net income to grow this year. This aligns with the revenue increase projections mentioned in the article and reinforces the company's potential for financial growth.
InvestingPro Data highlights a market capitalization of $2.67 billion and a high P/E ratio of 59.97, which climbs even higher to 69.21 when adjusted for the last twelve months as of Q3 2023. Despite this high earnings multiple, the company pays a substantial dividend to shareholders, with a yield of 6.64% as of the end of Q3 2023. Additionally, HASI has demonstrated strong returns in the short term, with a 36.8% increase over the past month and 17.91% over the last three months.
For investors seeking deeper analysis and more comprehensive tips, the InvestingPro platform lists additional insights, including a total of 16 InvestingPro Tips for HASI. Currently, InvestingPro subscription is available at a special Black Friday sale with discounts of up to 55%, offering a valuable opportunity for investors to access these tips and enhance their investment strategy.
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