Atlantica Sustainable Infrastructure upgraded to Buy from Neutral at UBS

UBS analyst William Grippin upgraded Atlantica Sustainable Infrastructure to Buy from Neutral with a price target of $25, up from $19. The analyst’s analysis of Atlantica’s renewable development pipeline supports a 9% cash available for distribution growth through 2028, underpinned by relatively conservative return and success rate assumptions. While cost and availability of the necessary equity proceeds to fund development spending beyond 2024 remains a risk, investors benefit from the company’s’ “relatively attractive” 10% 2024 distribution yield while awaiting a more constructive funding environment, the analyst tells investors in a research note.