DAVY VIEW

Greencoat is one of few companies, even in its own sector, that is effectively untouched by the current challenging environment. For investors, key characteristics remain in place, including (i) an unscathed operating model, (ii) surety of medium-term cashflow (our expectations for the next eight years remain unchanged by recent developments) and (iii) a robust future growth opportunity. Considered together, these equate to a highly secure dividend (currently yielding c.5.5%). Despite its resilient recent performance, we still view it as an interesting investment opportunity. We reiterate our ‘Outperform’ recommendation.