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  5. AQN: Why renewables have been down so much and for so long even though their fundamentals are strong ? [Algonquin Power & Utilities Corp.]
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Q: Why renewables have been down so much and for so long even though their fundamentals are strong ? They were down before interest rates started creeping up. Pipelines, which are also interest rate sensitive, are doing OK.

Asked by Dev on January 14, 2022
5i Research Answer:

Renewables likely went up way too much in 2020, and have come back to reality.  Rate fears do have an impact, moreso than pipelines which get sentiment benefit from higher oil prices. We think the sector is starting to look a bit better: In a risk-off market, higher dividend yields should start to get more attention.