Morgan Stanley initiated coverage on shares of Pattern Energy Group (NASDAQ:PEGI) in a research note issued on Wednesday, AnalystRatings.NET reports. The firm set an “overweight” rating and a $26.50 price target on the stock. Morgan Stanley’s price target would suggest a potential upside of 14.52% from the company’s current price.
The analysts wrote, “We expect YieldCos like Pattern to be profitable consolidators in the power industry. Pattern’s strong growth profile, contracted power sales and relatively high payout ratio translate to attractive total returns and valuation, and a strong currency for project development and acquisitions. We forecast PEGI will generate a 2014 dividend per share of $1.37 ($49m in total), with a run-rate distributable cash flow in 2014 of $80m. We expect the dividend per share to grow at 11% per year on average through 2016.”
A number of other analysts have also recently weighed in on PEGI. Analysts at BMO Capital Markets initiated coverage on shares of Pattern Energy Group in a research note to investors on Wednesday. They set an “outperform” rating on the stock. Analysts at RBC Capital initiated coverage on shares of Pattern Energy Group in a research note to investors on Wednesday. They set an “outperform” rating and a $28.00 price target on the stock.
Shares of Pattern Energy Group (NASDAQ:PEGI) traded up 3.20% on Wednesday, hitting $23.88. The stock had a trading volume of 318,383 shares. Pattern Energy Group has a 1-year low of $22.26 and a 1-year high of $24.30. The stock’s 50-day moving average is $22.95 and its 200-day moving average is $22.95. The company has a market cap of $848.4 million and a price-to-earnings ratio of 50.09.
Pattern Energy Group Inc is an independent power company focused on owning and operating power projects.
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