Hannon Armstrong upgraded to Neutral at BofA on balance sheet acceleration

As previously reported, BofA analyst Julien Dumoulin-Smith upgraded Hannon Armstrong to Neutral from Underperform with a price target of $34, down from $39. The firm expects an acceleration of higher yielding equity interests, such as the AES portfolio recently announced, it tells investors. With the easing of interest rate hike expectations, Hannon Armstrong has indicated that it can compound at a "much accelerated 20-30%" versus historical origination growth averaging at 8-10% annually, marking a "substantive acceleration," though there is "still a lot to prove out" and details remain critical to a rerating, the firm said.