BMOs Ben Pham: $81.63???Don't know how that T/P of $81.63 crept in.
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May 3, 2023 | 17:07 ET~
Fortis FTS-TSX Rating Market Perform Price: May-3 $60.48
Target $60.00 Total Rtn 3%
Q1—Strong Quarter and Five-Year Capex Plan Tracking to Expectations
Bottom Line: The strong results are once again indicative of improved earnings growth following a lull in the 2018-2021 time frame. Some positive variance (4-5c) was due to timing of wholesale sales/transmission revenues at UNS, but results were also supported by reliable rate base expansion and Energy Infrastructure (Belize hydro).
Asset quality remains strong (99% regulated) and FTS opportunistically sold Aitken Creek at favorable valuations to fund growth.
With recent trading levels (forward P/E at ~20x P/E vs. ~18x earlier in year), we maintain our $60 target price and Market Perform rating.