Jefferies upgrades to 'hold' on divestment potential
10/02/2022 15:25
** Jefferies upgrades JLEN JLEN.L to "hold" from
"underperform", saying the investment trust is well placed to
divest more wind/solar assets
** In January, JLEN sold two French onshore wind farms to
Volta Developpement for EUR 5.9 mln ($6.74 mln) urn:newsml:reuters.com:*:nTUCbbLjmY
** "It marked the first time a renewable infrastructure fund
has disposed of an operational project," Jefferies says
** Brokerage says JLEN is well postioned to realise more
divestments and recycle the capital into higher return assets
** Jefferies says newer investments in transport,
infrastructure, food waste or energy storage will offer higher
prospective returns
** Adds crystallising valuation uplifts on wind/solar sales
not guaranteed, but any uplifts would be the "icing on the cake"
** Brokerage says co has enough assets (37 now) to weather
the impact of divestment from a portfolio diversification
perspective
** "Sale leg of the process will naturally erode dividend
cover before the proceeds can be reinvested" - Jefferies
** Of 3 analysts covering JLEN stock, two rate it "strong
buy" or "buy" and one rates it "hold"
($1 = 0.8754 euros)
(Reporting by Juliette Portala)
((juliette.portala@tr.com))