Analysts from Baird named Hannon Armstrong (NYSE:HASI) a ‘Bullish Fresh Pick’, albeit with a reduced price target of $28.00, down from $44.00, while sustaining an Outperform rating. The analysts perceive the recent notable dip in the company’s stock price as an exaggerated reaction.
Baird noted that despite announcements from similar yield companies and a “higher for longer” narrative alongside a decidedly bearish viewpoint on the renewables sector contributing to an approximate 18% plunge in the stock over the previous week (compared to a roughly 1.5% uptick in the SPX), Hannon Armstrong should be seen in a favorable light leading into Q3 results.
The analysts emphasized that the recent market movement seems to have neglected Hannon Armstrong’s diverse portfolio, robust financial standing, and arguably lower susceptibility to interest rate risks than initially feared, among other aspects. The analysts adjusted estimates in keeping with comps and continue to advocate for the shares.