Industrial Alliance maintains "Buy" - Today's Globe and Mail Ahead of Tuesday’s release of its quarterly results, Industrial Alliance Securities analyst Elias Foscolos lowered his target price for shares of AltaGas Ltd. (ATA-T) after coming off research restriction following the completion of the initial public offering of AltaGas Canada Inc. (ACI-T).
Mr. Foscolos is projecting earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter of $256-million, which sits $1-million higher than the consensus on the Street, and does not expect to see “material” contributions from its recent $8.4-billion acquisition of WGL Holdings Inc. until the next quarter.
“Simultaneously with the release of the Q3 results we would be looking for guidance on EBITDA growth, capex for 2019, and the company’s funding strategy to reduce its $1.4-billion bridge facility remaining after asset distribution,” the analyst said.
“We have recalibrated our financial model to account for the consideration that will be received from the IPO of ACI along with the loss of EBITDA. Additionally, we have accounted for the impact of the acquisition of the Aitken Creek processing facility.”
Maintaining a “buy” rating for AltaGas shares, Mr. Foscolos’s target dipped to $27 from $28.50. The average is currently $25.61.