HASI initiated with an Outperform at RBC Capital

RBC Capital analyst Christopher Dendrinos initiated coverage of HASI with an Outperform rating and $41 price target. HASI partners with energy project developers, owners and operators, utilities, and energy service companies to fund projects that facilitate the energy transition, the firm notes, adding that the company’s business model is resilient, demonstrating consistent returns through multiple market cycles. RBC believes the company is positioned to grow earnings at the high-end of its 2024-2026 8%-10% outlook, benefiting from a strong macro backdrop, improving cost of capital, and a declining interest rate environment that could promote widening spreads in the near-term.