08:06 AM EDT, 04/18/2023 (MT Newswires) -- Algonquin Power & Utilities Corp. (AQN.TO, AQN) was downgraded to Neutral from Outperformer at CIBC Capital Markets.
Analyst Mark Jarvi lowered his price target on shares of the Canadian renewable energy and regulated utility company to US$10 from US$17.
"Ultimately, we believe the decision to walk away from the Kentucky Power deal makes the most sense given the more challenged financial position of AQN today," Jarvi said in a note to clients. "We believe this is a critical step to AQN turning a new page and addressing its funding and balance sheet challenges."
"The company still needs to shore up its balance sheet through asset sales (albeit less sizable with no Kentucky Power deal to fund)," the analyst said.
"...Investor confidence has been severely eroded and will take time (and stronger execution) to be restored."
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