RE:RE:RE:RE:RE:RE:RE:RE:RE:Dividend cut necessary DJ Innergex Renewable Could Cut Back its Capital Allocation Strategy -- Market Talk
Monday, February 12, 2024, 8:27 AM ET
0827 ET - Innergex Renewable Energy may be planning a new capital allocation strategy, which could include a dividend cut, Nelson Ng says in a report for RBC. The analyst says that the company's payout ratio has been at or above 100%, including prospective project expense, for the past five years. Ng says that a much lower payout is appropriate for a growth company at this point so that it can better manage its medium-term debt and remain financially flexible. This could put off some investors in the near-term, and so RBC lowers its target price to C$11 from C$13 "to reflect our view that there will be a transition period before investors can get more constructive on the company's strategy." (adriano.marchese@wsj.com)