DAVY VIEW

Persisting interest rate uncertainty and a period of disappointing share price performance across the renewable infrastructure sector disguise another year of solid shareholder returns at Greencoat UK Wind (UKW). Those returns, +7p/share in 2023, were secured despite a significant reset in key macroeconomic value drivers including portfolio discount rates and power price forecasts. With both now closer to sustainable levels, UKW’s medium-term cash generation potential and attractive valuation can come to the fore. We reiterate our ‘Outperform’ rating.