Palm Valley Fund Opens Avista Stake, Citing Valuation
The fund began a small position in the utility, pointing to its valuation and citing pressure from interest rates and a wildfire.
Key takeaways
- Palm Valley Capital Fund initiated a small Avista position in the third quarter.
- The fund said Avista traded near tangible book value and about 13.5 times estimated earnings.
Palm Valley Capital Fund opened a small position in Avista during the third quarter, saying the utility’s shares again offered an attractive potential return relative to risk. The fund said the stock traded near tangible book value and about 13.5 times estimated earnings.
The fund cited higher interest rates as a source of pressure on Avista shares. It said a wildfire in the company’s service territory during the quarter likely also contributed to weakness.
As of 15:43 UTC Monday, Avista shares traded at $35.25, down 0.17% since the previous close.
This article was produced with the help of AI technology. Source: Yahoo Finance
