Jefferies upgrades GCP Infrastructure Investments to 'buy'.

Infrastructure investment firm GCP was performing well on Friday after analysts at Jefferies upgraded their rating on the stock from 'hold' to 'buy' following the recent disposal of the Blackcraig Wind Farm.

GCP Infrastructure Investments Ltd
10 May 2024 11:12:36

Source: Sharecast

The company announced on 26 April that it has sold its interest in loan notes secured against the onshore wind farm in Dumfries and Galloway for £31m – a 6.4% premium to a valuation at the end of March – proceeds of which will be used to prepay drawings under its revolving credit facility (RCF).

Jefferies pointed out that the deal reduces GCP's net debt to £45m, making a "key initial contribution" to the company's conditional target of releasing £150m (equal to 15% of its portfolio) from disposals or refinancings to repay the RCF and return £50m to shareholders before the end of the year.

"A recent disposal has helped bring forward the date at which the RCF will be repaid and the capital returns indicated for 2024 can begin," Jefferies said in a research note.

"Additional disposals will further accelerate this process, with scheduled loan repayments raising the prospect of ongoing capital returns beyond 2024."

The stock was up 2.2% at 76.65p by 1111 BST.

FTSE 250 ( MCX )

ISIN: N/A

Exchange: London Stock Exchange

Sell:

0.00

Buy:

0.00

Change: 45.68 ( 0.22 %)

Date:

14/05/2025 - 11:50

Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.