The Globe and Mail reports in its Friday, May 26, edition that National Bank Financial analyst Rupert Merer has reaffirmed his "outperform" recommendation for Innergex Renewable Energy. The Globe's David Leeder writes that Mr. Merer cut his share target back by a loonie to $20. Analysts on average target the shares at $18.23. The Globe says Mr. Merer thinks valuations for Canadian renewable power infrastructure companies are now "compelling" with public markets at a discount to private markets. As well, Mr. Merer feels inflation will not have as significant an impact as previously feared. Mr. Merer says in a note: "Lower valuations across the sector have created a difficult equity financing environment, encouraging non-dilutive sources of financing to fund growth (including debt, asset recycling and sell-downs). Results have generally been soft on abnormal weather conditions, also dampening enthusiasm for IPP [independent power producer] stocks. A change in weather could help, but the impact of inflation on the cost of new projects could be a more persistent concern. That said, we believe inflation is a positive for the sector, given the benefit of rising power prices on the value of existing assets."