Steve DiGregorio Boralex Inc. BLX-T BUY Jun 20, 2018

None of the renewable businesses are under pressure on the dividends, but it's the valuations. He likes them for growth and ESG reasons, but hasn't made the switch. Once he did make the switch, BLX would be one of the first names on his list.

Between the March 28 budget till the eve of Good Friday, BLX rallied 9.2% while Algonquin Power (surprisingly) rose 6.1% and Northland Power 2.1%. Since February 24, Boralex has soared 20%, also outpacing its peers. Read Dark horses: Nuvei, Cineplex, Boralex for our full analysis.

Very good Q1 results. Full pipeline of fully contracted projects. Won 2 large storage projects in Ontario. Expects production to double within next few years. Rising rates have been an overhang on the sector. Great growth ahead.

Leading renewable energy producer. Mainly in wind, solar. Robust pipeline of storage projects expected to double production capacity. Valuations in space have been crushed. By far, best in the sector. Very high-quality assets, best management team. Multi-decade growth and tailwinds. 

Great entry point at historically low levels of 9x EBITDA. Recent record results, 22% growth in EBITDA. Strong free cashflow. Yield is 2.3%.

Power generation, in multiple different ways. Really embraced clean energy, which he's all for as an idea, but not as an investment. Cost of financing new projects has gone up measurably with higher rates, and the payback time is very long.

This is how he'd play the renewable energy trade. Thinks rates will go higher next year, which makes him cautious. If that's the case for rates, a lot of the bond proxies like utilities and REITs are going to come under pressure. A bit more upside potential, but for a trade.

By far, best performer in the space. Great growth in EBITDA, good balance sheet, great management.