RBC and National Bank Comment on AQN Strategic ReviewRBC Capital Markets Says Market Now Focused On Algonquin's Strategic Review 2023-05-12 10:31:02 AM ET (MT Newswires)
10:31 AM EDT, 05/12/2023 (MT Newswires) -- RBC Capital Markets said Thursday that it expects the near-term focus for Algonquin Power & Utilities Corp. (AQN.TO) to be on its decision to conduct a 3-month strategic review of its renewables business.
RBC said some investors were somewhat disappointed that the strategic review was a short period that did not include a potential sale process.
"Based on management's view of the opportunities that lie ahead, we believe the renewables business should stay (in some form), rather than go," RBC said.
RBC gave Algonquin a sector perform rating with a US$9.00 price target.
Meanwhile, National Bank of Canada said Thursday that if Algonquin sells its stake in Atlanta Sustainable Infrastructure plc, this would represent the over $1 billion in asset sales that the company is targeting.
If Algonquin sells all of its renewable assets, the company may be overcapitalized next year upon completion of its over $1.1 billion mandatory purchase contract.
The bank gave Algonquin a sector perform rating with a US$10.00 price target.