Hi there,
We've looked at Pinnacle a few times and although we do like the company inconsistent historical results have prevented us from moving forward. If you look at the chart, Pinnacle is only now jumping off its lows and is a long ways from where it was 3 years ago when it first listed.
In fact, it has been in a downward trend that was only recently broken. Keep in mind while other renewables have done quite well and above their pre-pandemic highs, PL has yet to reach those levels. Its close, but not quite there.
In terms of valuation, it is actually trading at a slight premium to historical averages so it doesn't look particularly cheap here. For Pinnacle it is all about execution. Since it went public, it has 11 quarters of performance against analysts estimates. It has missed 6 and only beat 5 times.
Pinnacle has all the makings of what could be a strong stock, but it has been an incredibly frustrating one to watch. IMO, lack of consistent execution is one thing that is holding the company back. If it can deliver, I believe it can perform quite well. The problem is, it hasn't been able to consistently deliver.
The good news, is that it beat in the last two quarters so perhaps it is starting to turn that corner. Personally, I'd like to still see more consistency.
Mat