CIBCAugust 13, 2021 Earnings Update
ALGONQUIN POWER & UTILITIES CORP.
Solid Progress On Growth Plans, But Stock May Be Held Back On M&A Reports &Possible Funding Needs
Our Conclusion
AQN continues to make solid progress on growth plans, with funding supported by the recent equity unit offering. Beyond results, it’s been reported that AQN is an interested bidder in Kentucky Power—while AQN was coy on the potential acquisition, it certainly left the door open. Questions around the potential acquisition and how AQN might finance might hold back the stock until we get more clarity. We’ve made limited changes to our long-term forecast. We reiterate our Outperformer rating and US$17.50 price target.