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Atlantica Sustainable Infrastructure (NASDAQ:AY) +2.9% in Wednesday’s trading as Bank of America upgraded shares to Buy from Neutral with a $32 price target, after the company launched a process to explore and evaluate potential strategic alternatives to maximize shareholder value.
Atlantica (AY) management said all opportunities will be considered in the process, including potential changes to sponsor structure, geographic footprint and strategic focus, which BofA’s Julien Dumoulin-Smith views as a “meaningful catalyst” for the stock.
The analyst likes Atlantica’s (AY) growing opportunity in renewables, with 2 GW of renewable assets and 5.6 GWh of energy storage development expected, concentrated in North America, and guidance “offers needed clarity on AY’s pipeline and strengthens our confidence in forthcoming CAFD growth.”
Atlantica (AY) “has an attractive project pipeline, and is reassuring investors that it’s ‘business as usual’ while it carries out its strategic review, WideAlpha writes in an analysis newly published on Seeking Alpha.