Friday, August 22, 2014, 11:14:33
Today’s analyst upgrades and downgrades
TIM SHUFELT
Inside the Market’s roundup of some of today’s key analyst actions. This file will be updated during the trading day.
Algonquin Power & Utilities Corp.’s attempt to acquire an Ohio-based gas distribution company Gas Natural Inc. appears unlikely to go ahead, according to CIBC World Markets analyst Paul Lechem. But Algonquin has other growth options, he said.
“While the Gas Natural acquisition appears to have stalled, Algonquin still has a strong development pipeline of projects ahead of it,” Mr. Lechem said.
Last week, Algonquin posted second-quarter earnings that beat analyst expectations, at the same time announcing a 12-per-cent dividend increase.
Mr. Lechem raised his price target on the stock to $9 (Canadian) from $8.25 while maintaining a “sector performer” rating. “While the outlook is solid, we believe that the stock is fairly valued at current levels,” he said.
The analyst consensus price target is $9.18, according to Thomson Reuters.