Q: Performance over the last year has indicated a price increase in excess of 20%. do you anticipate continued increase and if so why?
5i Research Answer:
We think that H can continue to perform well in the coming years as it benefits from long-term tailwinds of EV adoption, data centers, grid demand growth, etc. Utility companies typically act as 'bond proxies', and so if we do see rates eventually decline, we think that this can help drive investments into the space. It is difficult to predict if we will see similar forward returns to the past increase in price, but forward analyst estimates continue to climb, and its margin profile is quite strong.