Raymond James analyst David Quezada raised his price target on Altagas Ltd. (ALA-T) to C$32 from C$24.50 and maintained an “outperform” rating.
Shares in Altagas are up 41 per cent so far this year and already blew past the analyst’s prior price target.
“Buoyed by rising volumes and a supportive commodity backdrop in ALA’s midstream business along with strong rate base growth and rising Return on Equities on the utility side, we believe the outlook remains attractive for each of ALA’s core segments. At the same time, we expect the eventual monetization of the 10% stake in the Mountain Valley Pipeline to drive further deleveraging and eventually believe a split of the company’s two primary segments could unlock shareholder value,” Mr. Quezada said.