GREY:XEBEQ - Post by User
Post by
Ciaoon Oct 02, 2020 9:29am
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Post# 31657073
TD Action notes on Alternative Energy
TD Action notes on Alternative EnergyRenewable independent power producer (IPP) equities rallied sharply following themost recent trough in late-March, and have continued to outperform broader equitymarkets in recent months. The average share-price recovery for our coverageuniverse since late-March is 67% versus the 44% increase for the S&P/TSXComposite from the floor. The share prices of Boralex, Brookfield Renewable,Innergex, and Northland Power have all set new all-time highs.
We anticipate continued momentum for most Canadian renewable IPPs,despite their strong share-price performance in recent months. We expectthat companies will continue to successfully execute on contracted constructionprojects. Although our estimates do not include prospective development projectswithout a line-of-sight on an offtake agreement, Canadian renewable IPPs havestrong track-records of surfacing accretive growth through both development andstrategically focused M&A.
Thematic tailwinds are intact. In recent weeks, energy industry bellwethersand governments have articulated bullish plans for renewable power investment.This includes a mix of decarbonization targets (both those framed as aspirationaland firm), specific plans for increased renewable power investments, andmanagement commentary regarding a robust outlook for renewable powerdevelopment. We see our coverage universe as well-positioned to capitalize onthese ongoing trends