TD Waterhouse Upgrades to BuyFinally some good news. Below are comments today from TDW.
TD Investment Conclusion
TransAlta Renewables has a diverse platform of contracted operating assets, with
a weighted average contract life of 12 years. We view the company's attractive
dividend as sustainable, given RNW's highly contracted operating portfolio; RNW
targets an 80-85% payout ratio (after debt repayments). We have been encouraged
by the company's efforts to expand its growth opportunity set through the acquisition
of third-party development projects in the U.S. We anticipate that near-term
investments will likely focus on modestly sized development projects, and that RNW
will be selective in deploying capital. In our view, RNW's recent correction and
discounted valuation present an attractive entry point for investors
Our $13.00 target price is unchanged, but we are upgrading our recommendation to
BUY from Hold following the share-price pullback over the past five months.