I like a few companies in the renewables space, mostly due to the rise in importance of Environmental, Social and Governance (ESG) oriented companies to institutional investors. In this article, I’m going to talk about a new company I haven’t covered in the past.
Innergex Renewables (TSX:INE) is a Canadian renewables play which is absolutely on fire this past year. The company has seen its share price appreciate approximately 30% over this time frame, at the time of writing, due to tons of investor interest and solid earnings growth.
Institutional investors have poured into Innergex, fueling the ESG surge which doesn’t seem to be losing momentum at all, making Innergex an interesting option for those considering adding ESG portfolio exposure.
One of the institutional/industry investors that has piled into Innergez is Hydro Quebec, who has recently bought a 10% stake in Innergez, suggesting the Hydro utility out of Quebec may be eyeing an acquisition of Innergez, to gain more exposure to different renewables businesses complementing hydro for diversification purposes.
Innergez has an impressive track record (85% stock price appreciation over the past five years), but also has a solid long-term outlook for growth from these levels in the decades to come.
Whether Innergez ends up operating independently or is acquired in the years to come, an investment in this company should provide solid long-term value to investors with the ability to buy and hold for a reasonable amount of time. This is a stock I would be monitoring to look at adding position on dips, as the valuation has been run up of late.
Invest wisely, my friends.
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