Just received monthly report from Ophir asset mgmt (best performing small cap fund from 2015), looks like they have jumped on IFN bandwagon (probably with entry 55-65c price) implying they still think there is plenty of upside.
Here is the commentary they provided this month:
Infigen Energy Limited (IFN) is a leading provider of renewable energy in Australia with 557MW of generation capacity across six wind farms and a solar farm. Infigen is set to benefit from 1) recent stability provided from the conclusion of a prolonged government review of the Renewable Energy Target, 2) M&A activity in the sector providing strong look-through valuation multiples, 3) high realised prices delivering strong cash flows enabling an organic deleveraging of the business. Regulatory uncertainty over the past few years has led to underinvestment in the sector and a consequential tightening of the supply of Large-Scale Generation Certificates (LGC’s), pushing ‘green energy’ prices to record highs, which will benefit the company for some time to come.
Nice.
IFN Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
