Canaccord starts Abengoa Yield at Buy, raises Abengoa target to $44

|By:, SA News Editor

Abengoa Yield (ABY) receives an Outperform rating from Canaccord, which initiates coverage of the energy and utility company with a price target of $49/share.

ABY offers a differentiated growth platform, optimization of cash dividends (target payout is 90%), and benefits from its relationship with Abengoa - a key differentiator vs. other yieldcos, the firm says.

Canaccord also raises its price target for Buy-rated Abengoa (ABGB) to $44 from $28, viewing the goal of positive free cash flow in 2014 as very achievable, while a debt re-rating also looms as a potential catalyst enabling accretive refinancing (Briefing.com).