Pattern Energy Group Downgraded to Equal Weight at Morgan Stanley (PEGI)
Pattern Energy Group (NASDAQ:PEGI) was downgraded by analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research report issued to clients and investors on Tuesday, Stock Ratings News reports. They currently have a $26.50 target price on the stock, down from their previous target price of $31.00. Morgan Stanley’s price target would suggest a potential downside of 14.10% from the stock’s previous close.
The analysts wrote, “Risk-reward is skewed slightly to the downside, in our view, and our base case implies the shares are fairly valued,” the report noted. “Further, we already assume significant drop-downs over time (for example, 425MW in 2016) in arriving at our $31 price target. We could become more constructive if management demonstrated an ability to buy projects in excess of our current ~400MW assumption through 2015 (which could drive upside on dividend per share growth) or if project returns exceeded our current estimates.” Some highlights from the report included: -”Management has entered into purchase agreements for two projects totaling roughly 214MW of capacity.”-”We expect Pattern’s initial asset base to generate $1.56 of cash flow and $1.25 of dividends per share.”
Shares of Pattern Energy Group (NASDAQ:PEGI) traded down 1.81% during mid-day trading on Tuesday, hitting $30.85. 1,015,442 shares of the company’s stock traded hands. Pattern Energy Group has a one year low of $22.26 and a one year high of $31.79. The stock’s 50-day moving average is $27.18 and its 200-day moving average is $25.10. The company has a market cap of $1.096 billion and a price-to-earnings ratio of 41.62.
The company also recently declared a special dividend, which is scheduled for Thursday, January 30th. Investors of record on Tuesday, December 31st will be given a dividend of 0.3125 per share. The ex-dividend date of this dividend is Friday, December 27th.
A number of other analysts have also recently weighed in on PEGI. Analysts at RBC Capital raised their price target on shares of Pattern Energy Group from $28.00 to $33.00 in a research note to investors on Friday, December 27th. They now have an “outperform” rating on the stock. Separately, analysts at Wells Fargo & Co. initiated coverage on shares of Pattern Energy Group in a research note to investors on Tuesday, December 3rd. They set an “outperform” rating on the stock. Finally, analysts at Merrill Lynch initiated coverage on shares of Pattern Energy Group in a research note to investors on Wednesday, November 6th. They set a “buy” rating on the stock. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $28.50.
Pattern Energy Group Inc is an independent power company focused on owning and operating power projects.
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