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Bruce Jefferson in Commodities,

Barclays Likes Hannon Armstrong For Exposure To Alternative Energy, Initiates At Overweight

Barclays has started coverage of Hannon Armstrong Sustnbl Infrstr Cap Inc  with an Overweight rating and price target of $27, implying a potential upside of 8.5 percent.

The brokerage's bullish stance is driven by core business growth and continued investor demand for low-risk exposure to the alternative energy space.

"We expect 9.8 percent pa growth in transaction volumes to drive 10.3 percent pa 2017–19E growth in core EPS," analyst Jon Windham wrote in a note.

Windham sees Hannon's investment portfolio growing from $1.4 billion in the second quarter of 2016 to $3.8 billion by the end of 2019. The company targets about 30 percent equity funding, which implies over $200 million–$250 million in equity raises annually.

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