Trading at a c.18% discount to NAV (an implied asset level discount rate of c.10.2%pa), Foresight Solar (FSFL) is undervalued relative to other renewable generators, its own trading history and other long-duration assets. In our opinion, the key risk is investors’ required risk premium (spread over gilts). In light of the fund’s self-help measures (paying down the RCF, rotating in to higher returning assets and buying shares) and sensitivity analysis we believe the market has, by pricing at an a ....
