11:17 AM EDT, 04/24/2023 (MT Newswires) -- Credit Suisse on Monday reiterated its outperform rating on the shares of Algonquin Power & Utilities (AQN.TO) and its US$10.50 price target ahead of the company's first-quarter results and after the collapse of its agreement to acquire Kentucky Power.
"With the Q1 2023 results being reported on May 11th, another potential catalyst on the re-rating path is in close proximity; however, we don't expect a meaningful deviation from the playbook. Key parts of the current playbook are largely focused on divestitures initially focused on renewables, the strategic review process for Atlantica Sustainable Infrastructure (AY) and, eventually, some of the utilities in the portfolio. We continue to believe AQN's risk-reward relationship and re-rate potential is very meaningful - albeit the road is likely to be rocky and dependent on news flow coming from successful strategic execution of the plan ... Some express concern on AQN's vigilance on executing asset sales - especially with the Kentucky termination. We believe management will deliver the asset sales; however, a potentially growing list of more active investors may motivate change at an accelerated rate," the investment bank wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 11.52, Change: +0.21, Percent Change: +1.86