National Bank 11:24 AM EDT, 09/21/2022 (MT Newswires) -- National Bank Financial on Wednesday reiterated its outperform rating on the shares of Northland Power (NPI.TO) with a C$49.00 price target after the renewable-power producer took part in a panel staged by the investment bank focused on European power markets and price caps put in place by the European Union.
"We hosted Mike Crawley, President & CEO of NPI, who discussed the impact on NPI's revenues from high power prices this year, and the anticipated impact of price caps next year. In the long-run, power prices should be higher in Europe than what we saw before the energy crisis (<(Euro)50 /MWh), and this should support higher returns on projects and and accleration of growth," analyst Rupert Merer said in a note. "The price cap should not impair the originally intended returns on NPI's projects with subsidy contracts, as they should still earn a top-up. At Gemini, NPI has a subsidy contract with a price of roughly (Euro)169/MWh (less than the price cap) and it could see some upside to contract prices next year with the price cap. NPI does not believe that the cap would be retroactive."