Cavendish Rates Gresham House Higher Than Gore Street in Battery Storage Coverage
Cavendish initiates coverage on battery storage funds, rating Gresham House a 'buy' and Gore Street a 'hold'. The contrasting strategies highlight Gresham's growth focus versus Gore Street's capital return approach.
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Cavendish has initiated coverage of Gresham House Energy Storage Fund PLC (LSE:GRID) and Gore Street Energy Storage Fund PLC (LSE:GSF) with split ratings. Gresham House is rated a 'buy' due to its growth strategy, aiming to nearly double its portfolio capacity with innovative financing over the next three years, which could enhance per-share value significantly.
Conversely, Gore Street's strategy of returning capital through a 7 pence annual dividend, reliant on asset disposals, raises concerns about its long-term viability. The broker expressed that delays in project execution could hinder Gresham's growth, while Gore Street’s revenue performance, particularly in US markets, has not met expectations, leading to a potential underperformance until asset disposals or revenue recoveries occur.
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