Brookfield Renewable Partners' (BEP) scale, sector expertise, capital access, and deep customer relationships position it to deploy and recycle capital at "industry-leading" returns, RBC Capital Markets said in a Wednesday note.

At its investor day, the company noted that it is now active across wind, solar, battery storage, and nuclear, each facing significant tailwinds, analysts said.

RBC said that capital recycling has become a core part of the company's business activity due to the size of its operating portfolio and development pipeline.

The investment firm said Brookfield Renewable Partners raised its five-year capital deployment target to more than $11 billion from $9 billion to $10 billion, while reiterating its 12% to 15% targeted equity IRR on deployed capital.

Analysts said that Brookfield Renewable Partners does not expect higher interest rates and inflation to materially impact the pace of asset sales.

RBC retained an outperform rating, with a $35 price target.

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