BMO analyst updateALA-TSX Rating Outperform
Price: Oct-28 $25.11
Target ↓ $36.00
Total Rtn 48%
Q3 — Results Fall Short but 2022 Guidance Intact on Waning LPG Margin Pressures Bottom Line: While third-quarter results fell short, key here is that management remains confident delivering to 2022 guidance, particularly noting that inflationary pressures on LPG logistics costs have eased, while USD F/X translation is emerging as a modest tailwind. Also, Utility had a record quarter with 2022 Utility rate base growth expected in the high single digits. Combined with the ~48% potential total return to our new $36 target price (vs. $37) and attractive valuation (~28% P/E discount), we are maintaining our Outperform rating and would continue accumulating.