DAVY VIEW

Greencoat Renewables’ (GRP) 2021 performance is a reminder of the highly supportive operating environment it currently enjoys. We upgrade our net asset value (NAV) forecasts for the third time in as many months to reflect the continuation of elevated wholesale electricity prices. In truth, there remains significant upside to our estimates, and we now expect a succession of NAV upgrades for as long as the power price and inflation environments remain above normally anticipated levels. We believe the stock could reach 127c by the end of the current year (1.15x price/book, c.5% dividend yield) and reiterate our ‘Outperform’ recommendation.