Brookfield Renewable Stock Climbs Higher: Time to Buy?

Brookfield Renewable stock (TSX:BEP.UN) continues to climb, but remains below the $40 mark. But that share price looks in view.

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Brookfield Renewable Partners LP (TSX:BEP.UN) continues to ride the higher share price it’s enjoyed over the last few months. Shares continued to climb this week, but it seems that investors are skittish around the $40 range. That, of course, could be because the company currently has a consensus price target of $41.19 as of writing.

But could that also mean there is still a deal to be had with Brookfield Renewable stock? Let’s look at what’s been driving the higher share price and the outlook for this growing company.

What happened

First, what’s been happening lately with Brookfield Renewable stock that investors should know about? Brookfield Renewable stock on the TSX has seen a significant rise this week due to several key factors. The company has been actively engaging in major acquisitions and financing activities, which have strengthened its market position and investor confidence. For example, Brookfield Renewable secured approximately US$6 billion in financings, which has bolstered its liquidity. 

Additionally, the company’s strategic partnerships and asset recycling activities are expected to generate substantial proceeds, which can be reinvested in high-return projects. This has positioned Brookfield Renewable well for sustained growth and value creation, contributing to the positive market sentiment. 

Moreover, Brookfield Renewable’s recent acquisition of a minority stake in Duke Energy Renewables for US$2.8 billion has been viewed favourably by investors, reflecting the company’s ongoing expansion and investment in renewable energy assets.

Analysts weigh in

That’s all well and good, but it’s the analysts that can really paint a picture of whether Brookfield Renewable stock now looks like a strong buy. And in this case, analysts have maintained a generally positive outlook for the company.

The consensus rating now is a “Moderate Buy” on Wall Street with, as mentioned, significant potential upside given today’s share price. Meanwhile, Brookfield stock’s dividend yield remains attractive to investors. The company announced an upcoming dividend of US$0.34 per share at a yield of around 5.2%, which supports its appeal as a dividend stock.

Overall, while there are some concerns regarding high expectations and potential financial risks due to increased debt, analysts believe that Brookfield Renewable’s strategic positioning and robust growth initiatives provide significant long-term investment potential.

Looking ahead

All this is great for the present, but the future offers even more for investors. Brookfield Renewable stock reported robust financial results, including record performance metrics in 2023. The renewable energy sector is experiencing strong growth driven by global efforts to transition to cleaner energy sources. Policies aimed at reducing carbon emissions and increasing investments in renewable energy infrastructure are creating a favourable environment for companies like Brookfield Renewable.

What’s more, innovations in renewable energy technologies and storage solutions are enhancing the efficiency and cost-effectiveness of renewable energy projects. This trend is expected to continue, providing additional growth opportunities for industry leaders.

And that trend includes Brookfield renewable stock. The company is expanding its footprint globally, with significant projects and acquisitions in North America, South America, Europe, and Asia. This geographic diversification helps mitigate risks associated with regional market fluctuations and regulatory changes. So with a high dividend yield, a rising share price, and solid outlook, Brookfield Renewable stock looks like a strong investment on the TSX today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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