Credit Suisse Credit Suisse analyst Andrew Kuske sees a buying opportunity in Canadian renewable power stocks,
“the TSX renewable sub-sector remains the weakest performer among the three major infrastructure related groups (energy infra, renewables and utilities). From our perspective, largely on the basis of coherent NAV driven approaches to valuation, rather compelling opportunity set is present in some of the renewable stocks with one of the most fundamentally favourable narratives across a variety of sub-sectors … We reiterate our Outperform ratings on Brookfield Renewable Power LP (BEP), Innergex Renewable Energy Inc. (INE) and Northland Power Inc. (NPI) in the core pure play renewable stocks along with identical ratings on the Alberta incumbents: Capital Power Corporation (CPX) and TransAlta Corporation (TA). Simply, we view BEP as one of the best in class globally focused renewable players with a unique business and funding model … Both INE and NPI offer interesting value propositions in our view after a series of real or perceived strategic missteps or weak execution. Overall, we are most constructive on Alberta’s power market with an interesting market transition that does not appear to be fully appreciated by the Street. On this basis, TA provides a compelling valuation.”