Raymond James downgrades Atlantica Sustainable, says sale less likely

Raymond James downgraded Atlantica Sustainable Infrastructure to Market Perform from Outperform with a price target of $25, down from $36. With rate increases driving “pronounced trading contractions” across the power and utility peer groups, the firm reducing price targets accordingly. The recent downdraft in sector valuations renders a sale of Atlantica Sustainable Infrastructure at a reasonable price “somewhat less likely,” the analyst tells investors in a research note. The firm says that while a sale could still materialize, its neutral stance also reflects potential challenges the company could face delivering further cash available for distribution growth beyond current identified opportunities, given the lack of a viable sponsor and the early stage of its growth projects.