Globe * After hosting its senior management team for investor meetings, Scotia Capital analyst Robert Hope raised his target for AltaGas Ltd. (
) to $29 from $25 with a “sector outperform” rating. The average is currently $25.97.
“The meetings highlighted the numerous reasons we like the shares, including: (1) improving returns from existing assets; (2) significant visibility into 8-10 per cent annual utility rate base growth; (3) torque to increasing energy activity in western Canada; (4) a self- funding model; and (5) attractive relative valuation,” he said. “AltaGas continues to be our favourite utility name. We increase our target price ... as we now believe the company deserves a valuation at least in line with its peers’. We believe that further valuation expansion could be driven by additional clarity on its growth outlook and continued strengthening of the balance sheet.”