8point3 Energy cut to Sell at UBS, which calls premium unsustainable

|About: 8point3 Energy Partners LP (CAFD)|By:, SA News Editor

8point3 Energy Partners (CAFD -2.8%) is downgraded to Sell from Neutral with an $11 price target at UBS, which says shares are trading at a premium to both its yield ($13) and distributable cash flow ($8) methodologies, which it believes is unsustainable.

While acknowledging that CAFD has high quality sponsors with broad project pipelines, the firm sees its premium as materially higher than its highest quality peer, NextEra Energy Partners (NEP -0.2%).

UBS views CAFD as the second best yieldco structure, with a slight discount to NEP pinning shares in the $11-$13 range.

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