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(Sharecast News) - Analysts at RBC reiterated their view that the Infrastructure and Renewables Funds sector appeared to continue to offer "exceptional value".
Their top picks in the space were 3i infrastructure and Greencoat UK Wind.
In particular, they noted that the sector was still changing hands at discounts to companies' net asset values that were still close to record levels, despite recent and expected interest rate reductions out of the Bank of England.
That was even more the case given how NAVs had been proven through asset disposals, especially in wind and infrastructure.
"In particular, the recent post-Budget sell-off offers an attractive buying opportunity, with portfolios now delivering an expected average excess return on Gilts of 6.1% p.a., ~100bps higher than the 5-year average, with share prices now approaching implied risk premiums not seen since Covid, despite a diametrically opposed outlook for renewables."
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