Stifel has upgraded its view on the listed wind funds sector, after share prices were hit by weaker-than-expected power generation in the first half of 2025.
The broker noted that weaker wind led to The Renewables Infrastructure Group Limited (LSE:TRIG), Greencoat UK Wind PLC (LSE:UKW) and Greencoat Renewables PLC (LSE:GRP) all facing NAV declines - 6.6%, 5.2% and 8.6% respectively.
Dividend cover has come under pressure, but Stifel has removed its 'negative' stance and moved to a 'neutral' rating.
The sector has de-rated, with shares typically down 15% since late July. Stifel now sees yields of 9-10% as appropriate, given risks including subsidy end dates, weak generation and leverage.
Greencoat UK Wind was upgraded to 'neutral' with shares at 111p, implying a 23% discount to NAV and a 9.4% yield.
TRIG was also raised to the same stance with shares at 78p, a 26% discount to NAV.
Likewise, Greencoat Renewables at 73c, with Stifel expecting a relatively wide discount given recent weak NAV performance and significant leverage.
Dividend cover levels and wind conditions in the coming months are likely to be key drivers for the shares, said Scouller.
With wind speeds remaining below average, the sector will be crossing its fingers for a particularly windy autumn.