S&P/ASX 200 Index (ASX: XJO) stock Infratil Ltd (ASX: IFT) is succumbing to the broader market sell-off today.
During the Monday lunch hour, the ASX 200 is down 0.6% amid investor concerns about the escalating trade tensions between the United States and China.
The Infratil share price is down a steeper 1.6% at this same time.
Shares in the New Zealand-based infrastructure investment company, which trades on both the ASX and the New Zealand stock exchange (NZX), are currently swapping hands for $10.64 apiece.
That sees the ASX 200 stock down 3.8% since this time last year and gives it a market cap of $10.4 billion. Longer term, Infratil shares are up 115.0% over five years. Infratil stock also trades on a 1.5% unfranked trailing dividend yield.
And looking to the year ahead, EnviroInvest's Elio D'Amato sees tailwinds building to help Infratil shares outperform (courtesy of The Bull).
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Should you buy this ASX 200 stock today?
"Infratil continues to deliver via its infrastructure investments in renewables, digital platforms and critical services located around the world," said D'Amto, who has a buy recommendation on the ASX 200 stock.
"A recent disclosure included a renewables valuation workshop that it presented to investors and analysts in September," he added.
Citing the first reason Infratil shares are a buy, D'Amato said, "It benefits from momentum in the clean energy sector, with markets materially re-rating infrastructure exposed to low carbon assets."
Then there's the company's growth and modest passive income payments.
"It's profitable, growing and pays a small dividend yield," D'Amato noted.
As for the third reason he's bullish on the ASX 200 stock, D'Amato said, "Infratil's balance sheet and scale give it options to back future transitions."
Connecting the dots, he concluded, "We see clear upside, so it merits investors considering a buy."
What's the latest from Infratil?
Atop its exposure to the clean energy sector, Infratil has also been investing heavily in data centres, giving it exposure to the booming growth in artificial intelligence (AI).
On 24 September, the ASX 200 stock announced that its data centre business, CDC, had secured around 100 megawatts (MW) of new contracted capacity. Infratil shares closed up 1.1% on the day and gained another 1.2% the following trading day.
Commenting on the positive growth outlook on the day, Infratil CEO Jason Boyes said:
This announcement provides high visibility that CDC remains on track to double FY25 earnings by FY27. With other contracts signed since May, approximately 95% of forecast lease revenues are now under contract, and we remain confident in contracting the remaining capacity.
