Credit Suisse Initiates a Buy Rating on Pattern Energy

By Carrie Williams

In a report released yesterday, Maheep Mandloi from Credit Suisse initiated coverage with a Buy rating on Pattern Energy (NASDAQ: PEGI) and a price target of $22. The company’s shares opened today at $19.12.

Mandloi observed:

“We initiate coverage of Pattern Energy Group (Pattern) with an Outperform rating and a $22 target price. Substantial near- term growth vs current levels is secured through recent acquisitions, longer- term growth is insulated from a more uncertain US renewable energy policy outlook, and the stock is trading near our assessment of net asset value. Disciplined Approach, but Definitely Growth: We model a 10% dividend CAGR 2016-2020 and more substantial CAFD/share growth over the same period.”

According to, Mandloi is a 1-star analyst with an average return of -5.5% and a 62.5% success rate. Mandloi covers the Technology sector, focusing on stocks such as SunEdison Inc, Vivint Solar, and First Solar.

Currently, the analyst consensus on Pattern Energy is Strong Buy and the average price target is $36, representing an 88.3% upside.

In a report issued on November 8, BMO Capital also reiterated a Buy rating on the stock.

The company has a one year high of $25.13 and a one year low of $14.56. Currently, Pattern Energy has an average volume of 797.3K.

Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PEGI in relation to earlier this year.

Pattern Energy Group, Inc. operates as an independent power company, which focuses on the constructing, owning and operating energy projects with long-term energy sales contracts. It owns and operates twelve wind power projects in the U.S., Canada, and Chile. The company was founded on October 2, 2012 and is headquartered in San Francisco, CA.