Canaccord Downgrades Abengoa Yield Amid 'Confusion'

Canaccord Genuity on Monday downgraded Abengoa Yield PLC (NASDAQ: ABY) amid corporate structure and growth concerns. The firm now rates Abengoa as a Hold and lowered the stock's price target from $29.50 to $16.

Analysts John Quealy and Chip Moore wrote, "While we find the return of ex-ABY CEO (and most recent ABGB CEO) Santiago Seage a benefit for Abengoa SA ADR (NASDAQ: ABGB) itself (ABY shares are ABGB's most valuable/liquid asset as reorganization/bankruptcy negotiations start), for ABY's shareholders, this development (at face value) adds additional uncertainty surrounding the individuation process that has been a core tenant of our bull thesis."

Canaccord believes that to get back to a Buy rating, Abengoa will have to show progress on sponsor separation and recapitalization efforts. They believe shares will continue to be volatile in the near term and keep their conservative EBITDA and EPS estimates until management updates FY16 guidance.

Shares of Abengoa Yield last closed at $14.85, down 2.81 percent.