11 Most Undervalued Renewable Energy Stocks to Invest In

8. HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI)

Forward P/E: 10.90

On March 2, UBS raised the firm’s price target on HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) to $44 from $40 while maintaining a Buy rating on the shares. The firm said it updated its financial model following the company’s fourth-quarter earnings report, reflecting revised expectations for the firm’s capital deployment and investment pipeline in sustainable infrastructure projects.

On February 27, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) issued $600 million of 7.125% Green Junior Subordinated Notes due in 2056. The notes are guaranteed by several affiliated entities and are structured as subordinated unsecured debt that ranks below senior obligations but above equity in the capital structure. The company said it intends to initially use the proceeds to repay borrowings under its unsecured revolving credit facility and commercial paper programs or potentially redeem a portion of its 8.00% Senior Notes due 2027.

After the temporary use of proceeds, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) will allocate an equivalent amount of capital toward new or existing eligible green projects, reinforcing its role as a provider of financing for renewable energy and sustainable infrastructure development. The securities carry a fixed 7.125% coupon until November 15, 2031, after which the interest rate will reset every five years based on the five-year U.S. Treasury rate plus 3.478%, with a floor rate of 7.125%. The notes also allow the company to defer interest payments under certain conditions, with unpaid interest compounding until maturity. Optional redemption provisions tied to specific dates, tax or rating agency events, and changes of control provide additional flexibility for capital structure management.

Founded in 1981, HA Sustainable Infrastructure Capital, Inc. (NYSE:HASI) is a Maryland-based investment firm that focuses on financing energy efficiency, renewable energy, and climate-positive infrastructure projects.