On Wednesday, RBC Capital maintained its Outperform rating on shares of Green Impact Partners (GIP:CN) with a steady price target of Cdn$9.00. The firm acknowledged the company’s robust second-quarter results for fiscal year 2024 and its ongoing efforts to reach the financial close of its over $1.2 billion Future Energy Park (FEP) project within the same year.
Despite a setback with the Colorado Renewable (RNG) project, which has pushed expected positive EBITDA contributions to 2025, RBC Capital expressed confidence in Green Impact Partners’ enhanced financial flexibility.
The sale of Colorado investment tax credits (ITC) and the revised option agreement were highlighted as key moves that have bolstered the company’s liquidity. These strategic decisions are seen as instrumental in supporting Green Impact Partners as it continues to develop its project pipeline.
The firm’s analyst pointed out that these developments are indicative of the company’s commitment to advancing its projects despite the challenges faced.
Green Impact Partners’ Q2/24 performance was marked by solid financial results, reflecting the company’s resilience and potential for growth. The delay in the Colorado RNG project’s EBITDA contribution to 2025 is a hiccup in the company’s timeline but is counterbalanced by the financial maneuvers that have been undertaken.
The amended option agreement, in particular, has been a significant move for Green Impact Partners, providing the company with additional resources to push forward with its development objectives. It demonstrates Green Impact Partners’ ability to adapt and secure its financial standing in the face of project delays.
In summary, RBC Capital’s reiteration of the Outperform rating and the Cdn$9.00 price target on Green Impact Partners underscores the firm’s positive outlook on the company’s future. The strategic sale of tax credits and the amended option agreement have been pivotal in maintaining this perspective, as Green Impact Partners continues to work towards the financial close of its FEP project and beyond.
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