BofA cuts HA Sustainable Infrastructure price target on slower growth

BofA Securities has reduced its price target on HA Sustainable Infrastructure Capital (NYSE: HASI) stock to $45 from $49 while retaining a Buy rating. Despite the stock trading at $42.13, which represents a 61% increase over the past year, InvestingPro analysts believe the shares are marginally overvalued compared to the Fair Value estimate.

BofA kept its adjusted earnings per share (EPS) estimate for 2026 at $3.11, downgraded to $3.56 for 2027 and $3.86 for 2028. These revisions suggest a more gradual earnings growth trajectory. The firm’s estimates are still higher than the consensus estimates of $3.34 for 2027 and $3.65 for 2028. The updated price target reflects lower earnings projections, revised peer multiples, and a projection to 2028.

The new target is calculated on a 15.6 times price-to-earnings (P/E) ratio, which is significantly lower than the current P/E ratio of 63.58, but has been highlighted as a substantial discount by InvestingPro Tips. Notably, HASI has increased its dividend for seven consecutive years and currently offers a 4% yield. The earlier valuation relied on an average price-to-earnings ratio of 18.2 times for 2027 and 15.7 times for 2028.

Earlier in the week, Hatteras Energy reported its second-quarter 2026 earnings, outpacing analysts' expectations with adjusted earnings of $0.75 per share and revenue of $120.79 million, surpassing the anticipated $111.19 million. The company's management increased its adjusted EPS outlook for 2028, showcasing confidence in ongoing investment activity.

Hannon Armstrong Sustainable Infrastructure Capital Inc also discussed its second-quarter 2026 earnings during a conference call, with Aaron Chew, Senior Vice President of Investor Relations, addressing investors. These updates provide investors with valuable insights into the recent performance and future prospects of both companies. This report was assisted by AI and reviewed by an editor.