Greencoat UK Wind PLC (LSE:UKW) “offers reasonable value,” according to Stifel brokers, regardless of an anticipated plateauing of net asset value growth this year.
Following a strong 15% to 20% asset value growth penned by many of Greencoat’s funds in 2022, the trend should flatten this year as power prices fall, Stifel said, with the bulk of returns set to come from dividends.
However, shares will likely rebound from a current 6% discount to Greencoat’s net asset value, the investment bank added, prompting a retained “positive” rating for the FTSE 250-listed fund.
Stifel also reiterated a “neutral” weighting for Greencoat Renewables PLC (LSE:GRP), adding despite shares trading at a 4% discount to the fund’s net asset value, low wind speeds caused generation to fall in the first quarter.