10:13 AM EDT, 08/18/2023 (MT Newswires) -- BMO Capital Markets noted that subsector rotation/rising rates and, more specifically, capital cost inflation and lingering funding concerns have impacted Northland Power Inc.'s (NPI.TO) stock in 2023.
BMO analysts, however, view this "weakness as overblown" and believe that the current discounted valuation offers a particularly attractive entry point.
"Our stripped-down SOTP analysis, valuing NPI's operating assets separately from its secured growth pipeline, suggests investors are currently getting future growth 'almost for free'," the analysts said. "A particularly attractive opportunity to accumulate renewables shares, such as NPI, arises when this occurs."
The research firm has maintained its outperform rating with a price target of $38.
The company's shares rose nearly 3% on last look on Friday.
Price: 23.71, Change: +0.36, Percent Change: +1.54