Buy, Sell or Hold: Polaris Infrastructure (PIF-T)

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Polaris Infrastructure (PIF-T)

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TSE:PIF

11.85

0.15 (1.28%) 1d

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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Polaris Infrastructure is identified as a promising player in the renewable energy sector, particularly for its diverse portfolio, including geothermal, river, and solar energy production in Latin America. Despite facing challenges in the green energy space over the past year, the stock is perceived as undervalued, trading at a low multiple of 13x PE and offering an attractive dividend yield of 6.65%. Analysts highlight a significant upside potential of 70%, while the company's strong management is recognized for effectively reinvesting cash flow and pursuing strategic mergers and acquisitions. Though some experts express caution regarding interest rate increases impacting bond proxies like utilities and REITs, others see a favorable risk/reward scenario with the stock having recently hit a lower trendline on its chart, suggesting the potential for an upward move.

Consensus

Positive

Valuation

Undervalued

Similar

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TRADE

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.

BUY

He can't speak to fundamentals, but the chart is hitting the lower trendline. It's compressing into the right corner like a triangle, which is when you tend to get an upside move. Risk/reward is really good right now, even though it's down 9% in a really good market.

TOP PICK

A growing producer in green electricity in Latin America. They do geothermal, river and solar energy. The green sector has been under pressure the past year, but these shares are super cheap. Pays a 6.65% dividend and trades at 13X PE. There's 70% upside. Great management, reinvesting their cash flow into a nice pipeline with occasional M&A.

(Analysts’ price target is $20.90)

TOP PICK

Now called Polaris Renewable Energy. Pays a 6.4% dividend and trades at a 15x PE, a discount to peers.

(Analysts’ price target is $25.50)

PARTIAL BUY

Allan Tong’s Discover Picks Companies like Polaris trade at high PEs (102.44x), but that’s par for the course. Another caveat is that PIF is a small-cap of only $344 million, so it can be vulnerable to market mood swings—and we’ve had no shortage of that. PIF pays a steady dividend of 5%, which investors can collect as they wait. Given PIF’s caveats, consider this stock more a risky or partial buy. Read 3 Solid Infrastructure Stocks for our full analysis.

PAST TOP PICK

(A Top Pick Oct 06/21, Down 7%) Great green business. Slow, steady grower. Trades at half the valuation of other independents. Table-pounding buy. Only a matter of time before it goes up or gets bought at a serious premium.