AY - Atlantica Sustainable: Algonquin Dumps For A Low Price
2024-05-28 12:02:27 ET
Summary
- Atlantica Sustainable Infrastructure plc announced a sale to Energy Capital Partners at a price of $22.00 per share.
- The purchase price represents a premium to Atlantica's Sustainable price before rumors of the deal.
- We examine the deal valuation from AY and Algonquin Power & Utilities Corp.'s perspective and tell you why a slightly higher price is probable.
We have written about Atlantica Sustainable Infrastructure plc ( AY ) and Algonquin Power & Utilities Corp. ( AQN ) several times previously. In both cases, we were generally skeptical of the fantastically rich valuations that bulls were ready to pay. This was primarily a symptom of yield-chasing, where the underlying asset-based valuations were being ignored in favor of high payouts. We pivoted to a more constructive stance in the case of AY at an adjusted cost basis of $22.47 using covered calls ....
Atlantica Sustainable: Algonquin Dumps For A Low Price