Atlantica Sustainable Infrastructure initiated with a Sector Perform at National Bank

National Bank analyst Rupert Merer initiated coverage of Atlantica Sustainable Infrastructure with a Sector Perform rating and $31 price target. The company currently operates a proportionately consolidated 2,161 MW of renewable power with 398 MW of gas fired generation, 1,229 Mft3 of transmission lines and 17.5 Mft3 of water desalination capacity, and its assets offer higher O&M costs compared to photovoltaic solutions, the analyst tells investors in a research note. The firm warns however that Atlantica’s payout ratio was 89% last year and could see some headwinds from lower power prices.