Boralex Hold Rating Reiterated by TPH Following Second-Quart Tudor, Pickering and Holt on Monday reiterated its hold rating on the shares of Boralex (BLX.TO) with a C$41.00 target price after the renewable-power producer reported second-quarter results.
"Boralex underperformed (Friday) ... after printing in-line Q2 results driven by contributions from acquired wind and solar assets offsetting weaker hydro contributions," the investment bank said in a note. "Combined total power generation was 4% below anticipated production driven largely by hydro 24% below expectations, but up 22% y/y at 1,485GWh, ~1% ahead of our estimates. 743MW of new projects (~74% onshore renewables) were added to the development backlog (now at 3.3GW), while four projects totaling 41MW (TPHe C$13mm of EBITDA) advanced to the secured stage.
Meanwhile, three onshore wind projects in France totaling 96MW moved from secured projects and are now at the ready-to-build stage amounting to C$17mm of EBITDA. Of the new projects not already included in our estimates (47MW), we estimate equity upside of ~1.0% as in-service ranges from 2022-2024. No change to previously announced 2025 Combined EBITDA guidance of C$800-850mm and DCF of C$240-260mm. The company disclosed it is in the final stages of submitting projects under New York's tier 1 auction. Overall, steady results and further progress made on building the development backlog towards the 2025 target of 4.4GW, though we see marginal near-term upside. Maintain Hold."