Greencoat UK Wind has received a bullish write-up in an initiation note from broker Peel Hunt.
“Excess cash flow generation appears resilient at power prices lower than current spot and future levels, supporting capital allocation flexibility,“ said the broker.
“We find UKW’s simplicity and return profile appealing – offering both a competitive yield and capital growth – resulting in an attractive risk/return profile.”
The commitment to a significant share buyback programme and sector-leading dividend growth has helped UKW to re-rate versus peers.
'Outperform' is Peel Hunt’s rating.
Shares eased 1.4% to 142p.