Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 28 Aug, 25 | HASI | Buy | USD 28.01 | USD 29.4 | USD 30.8 | 26 days | Closed |
5.36%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include building or facility that reduce energy usage or cost through the use of solar generation and energy storage or energy efficiency improvements, including heating, ventilation, and air conditioning systems (HVAC), as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, transportation fleet enhancements, renewable natural gas plants, and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1981 and is headquartered in Annapolis, Maryland.
Adjusted Recurring Net Investment Income: Rose to USD 85 million in Q2 2025 from USD 68 million in Q2 2024 (+25%)
GAAP Net Income Growth: Increased to USD 98 million in Q2 2025 from USD 27 million in Q2 2024 (+263%)
Adjusted EPS Decline: Fell slightly to USD 0.60 in Q2 2025 from USD 0.63 in Q2 2024, reflecting share dilution
GAAP Net Investment Income: Declined to a loss of USD (3) million in Q2 2025 from income of USD 9 million in Q2 2024
HASI’s reliance on equity method investments tied to tax credits, exposure to rising interest costs from higher debt levels, and concentration in renewable energy asset classes present material risks that could impact earnings stability and long-term growth
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 28.01 | 24.5 | 29.4 | 30.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Earnings Growth: HASI reported a significant improvement in profitability during the second quarter of 2025. GAAP net income rose to USD 98 million, compared with USD 27 million in Q2 2024, while diluted GAAP earnings per share increased to USD 0.74 from USD 0.23 in the prior-year quarter. The increase was primarily driven by higher income from equity method investments, largely related to allocations of tax credit benefits in solar projects.
Adjusted Performance Metrics: Adjusted earnings for Q2 2025 were reported at USD 75 million, slightly above the USD 74 million recorded in Q2 2024. Adjusted earnings per share stood at USD 0.60, marginally lower than USD 0.63 in the prior-year period, largely due to a higher share count. Adjusted Recurring Net Investment Income reached USD 85 million, reflecting a 25% year-over-year increase, supported by growth in the company’s portfolio and stronger yields.
Portfolio Expansion and Asset Growth: The company’s Managed Assets expanded to USD 14.6 billion as of June 30, 2025, reflecting a 13% year-over-year increase from USD 13.0 billion in June 2024. The GAAP-based Portfolio stood at USD 7.2 billion, up from USD 6.2 billion in the prior year, with a portfolio yield of 8.3% compared with 8.0% a year earlier. Through the first half of 2025, HASI closed approximately USD 894 million of transactions, maintaining weighted average yields on new investments above 10.5%.
Capital Structure and Liquidity Enhancements: The company actively managed its capital structure during the quarter. HASI issued USD 1 billion of senior unsecured notes at a blended effective yield of 6.3%, repurchased USD 700 million of bonds due in 2026 and 2027, and repaid USD 200 million of convertible notes due in 2025. As of June 30, 2025, liquidity stood at USD 1.4 billion, including USD 87 million of cash and USD 1.3 billion of unused credit capacity. The debt-to-equity ratio was 1.8x, comfortably within the company’s targeted range.
Credit Ratings and Risk Management: During Q2 2025, HASI received an upgrade from S&P, marking its third investment-grade rating. This recognition further validates the strength of its business model and balance sheet. Approximately 97% of the company’s outstanding debt is either fixed-rate or hedged, reducing exposure to interest rate fluctuations. Credit performance within the portfolio remained robust, with negligible losses and strong asset quality across both commercial and government-backed investments.
Sustainability and Environmental Impact: HASI continued to advance its sustainability mission, with transactions closed in Q2 2025 expected to avoid an estimated 54,000 metric tons of carbon emissions annually. Overall, its Managed Assets contribute to avoiding approximately 8.4 million metric tons of emissions each year, as measured by its proprietary CarbonCount® methodology. This aligns the company’s financial performance with its environmental objectives.
Outlook and Guidance: Looking forward, management reaffirmed guidance for compound annual growth in adjusted EPS of 8–10% through 2027, based on a 2023 baseline. With a transaction pipeline exceeding USD 6 billion and double-digit yields on new investments, HASI remains positioned to deliver both financial growth and environmental impact, while maintaining a stable dividend of USD 0.42 per share for the quarter.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on HA Sustainable Infrastructure Capital, Inc. (NYSE: HASI) at the closing market price of USD 28.01, as on August 27, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Real Estate Industry: REIT - Specialty
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | |
|---|---|---|---|---|---|---|---|---|
| HASI Hannon Armstrong Sustainable Infrastructure Capital Inc |
0.23 0.69% | 32.98 | 76.50 | 11.43 | 25.49 | 1.49 | 20.78 | |
| AMT American Tower Corp |
-3.65 2.04% | 174.84 | 47.96 | 32.36 | 8.75 | 26.57 | 12.48 | 22.88 |
| EQIX Equinix Inc |
-1.835 0.25% | 746.04 | 76.95 | 63.29 | 9.32 | 5.79 | 10.70 | 25.99 |
| CCI Crown Castle |
-1.03 1.17% | 87.22 | 35.66 | 36.36 | 6.63 | 8.37 | 11.19 | 19.03 |
| DLR Digital Realty Trust Inc |
-0.755 0.51% | 147.63 | 46.75 | 98.04 | 7.73 | 2.30 | 10.89 | 19.17 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 27,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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