Boralex one of Desjardin Securities top picksDesjardin Securities top picks within the power and utilties sectord:
Algonquin Power & Utilities Corp. (AQN-T, “buy”) with a US$18.50 target. Average: US$16.57.
Analyst Bill Cabel: “Within our coverage, we expect AQN to show the highest EBITDA growth over the next two years, driven primarily by rate base investments and M&A (which offers an opportunity for significant rate base investment and ROE improvement).”
Boralex Inc. (BLX-T, “buy”) with a $50 target. Average: $46.73.
Mr. Cabel: “The onshore renewables name to own, in our view. We expect it will continue to win projects in France and New York, as well as new growth opportunities in the U.S.. We also expect EBITDA to grow at a 10–14-per-cent CAGR out to 2025.”
Northland Power Inc. (NPI-T, “top pick”) with a $52 target. Average: $48.06.
Mr. Cabel: “We remain extremely bullish on OFSW. With limited ways to play the OFSW space, we believe NPI is a standout IPP and expect it to grow its EBITDA by a 10-per-cent CAGR out to 2028.”