On Tuesday, BMO Capital Markets adjusted its outlook on Atlantica Sustainable Infrastructure (NASDAQ:AY), reducing the price target to $20 from $24 while maintaining a Market Perform rating.
The revision follows the company's fiscal year earnings report, where Atlantica reported an Adjusted EBITDA of $795 million, surpassing the BMO and consensus estimate of $785 million. This performance was also slightly better than the company's own revised expectations from the third-quarter call, which forecasted results to fall below the low end of the $790-850 million guidance range.
The company has set its guidance for the 2024 Adjusted EBITDA to be between $800-850 million. The midpoint of this range, $825 million, aligns with BMO's estimate as well as the consensus estimate of $822 million. BMO's decision to maintain the Market Perform rating indicates a neutral outlook on the stock's potential performance.
Atlantica's updated guidance suggests a steady outlook for the coming year, as the company aims to achieve similar financial results to the previous year. The new price target of $20 reflects BMO's current valuation of the company's stock based on these projections.
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