DAVY VIEW

Q2 was another steady quarter for Greencoat Renewables. As the company continues to digest its much-enlarged portfolio, net asset value (NAV) rose modestly to 103.5c in the period. Looking forward, its balance sheet (gearing just 44%) and market position look set to underpin the company’s ongoing expansion. Trading at less than an 8% premium to NAV (the average premium among UK listed renewable funds is currently c.18%), we believe this growth opportunity has yet to be fully priced in. We reiterate our ‘Outperform’ recommendation.