Credit Suisse Credit Suisse analyst Andrew Kuske sees value in the yield-heavy Canadian renewable power sector,
“We reiterate our Outperform ratings on Brookfield Renewable Power LP (BEP), Innergex Renewable Energy Inc. (INE) and Northland Power Inc. (NPI) in the core pure play renewable stocks along with identical ratings on the Alberta incumbents: Capital Power Corporation (CPX) and TransAlta Corporation (TA). Simply, we view BEP as one of the best in class globally focused renewable players with a unique business and funding model – partly owing to the relationship with Brookfield Asset Management (BAM). Both INE and NPI offer interesting value propositions in our view after a series of real or perceived strategic missteps or weak execution. Overall, we continue to believe that Alberta’s power market provides a unique set-up – albeit somewhat time limited given the reality of higher power prices and carbon pricing will attract incremental capacity. Beyond the Alberta power market, a number of the Canadian renewable stocks offer rather unique positioning and platforms with BEP probably being the most distinct. This note includes estimate changes for BLX, BEP, INE, NPI, TA and RNW along with a target price change for NPI from C$52 to C$50. There are no ratings changes.”