Alexander Bueso Sharecast News
11 Dec, 2024 14:12 11 Dec, 2024 14:12

RBC names Greencoat, 3i infrastructure as top sector picks

dl greencoat uk wind turbines energy electricity green renewable logo ftse 250
Greencoat UK WindSharecast graphic / Josh White

Greencoat UK Wind

126.00p

16:40 11/12/24
-0.40%
-0.50p

Analysts at RBC reiterated their view that the Infrastructure and Renewables Funds sector appeared to continue to offer "exceptional value".

3i Group

3,631.00p

16:50 11/12/24
0.39%
14.00p

Equity Investment Instruments

12,261.03

16:49 11/12/24
-0.43%
-53.55

Financial Services

17,649.63

16:39 11/12/24
1.05%
183.94

FTSE 100

8,301.62

17:14 11/12/24
n/a
n/a

FTSE 250

20,973.45

16:39 11/12/24
n/a
n/a

FTSE 350

4,582.32

16:39 11/12/24
n/a
n/a

FTSE All-Share

4,538.41

17:04 11/12/24
n/a
n/a

Their top picks in the space were 3i infrastructure and Greencoat UK Wind.

In particular, they noted that the sector was still changing hands at discounts to companies' net asset values that were still close to record levels, despite recent and expected interest rate reductions out of the Bank of England.

That was even more the case given how NAVs had been proven through asset disposals, especially in wind and infrastructure.

"In particular, the recent post-Budget sell-off offers an attractive buying opportunity, with portfolios now delivering an expected average excess return on Gilts of 6.1% p.a., ~100bps higher than the 5-year average, with share prices now approaching implied risk premiums not seen since Covid, despite a diametrically opposed outlook for renewables."

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