AY - Atlantica Sustainable: Too Low A Margin Of Safety To Weather Medium-Term Risks (Rating Downgrade)
2024-04-02 03:26:42 ET
Summary
- Atlantica Sustainable Infrastructure's stock continues to underperform the market.
- Despite the attractive and still stable dividend, the Stock is down due to subpar Q4 2023 results and a weaker outlook.
- I do not see any major risks for AY that could cause the dividend to get cut in 2024.
- Considering the forthcoming debt maturities and asset quality declines, if the interest rates do not trend downward, the Company might be forced to revise its dividend.
- In this article, I explain why I have decided to apply a more conservative view by downgrading the Stock from buy to hold.
In January this year, I wrote a bullish article on Atlantica Sustainable Infrastructure plc ( AY ) arguing that its ~ 9% dividend is fundamentally sound and backed by resilient cash flows....
Atlantica Sustainable: Too Low A Margin Of Safety To Weather Medium-Term Risks (Rating Downgrade)