Two More Following the FID on its latest LPG export facility, CIBC’s Robert Catellier increased his target for AltaGas Ltd. to $38 from $36 with an “outperformer” rating. Other changes include: Raymond James’ David Quezada to $35 from $34 with an “outperform” rating and National Bank’s Patrick Kenny to $35 from $33 with an “outperform” rating. The average target is $34.82.
“We maintain our constructive stance on ALA — a function of an attractive slate of growth opportunities, de-risking related to increased tolling volumes in the company’s midstream segment, as well as key catalysts including the newly approved FID at REEF and sale of the Mountain Valley pipeline stake,” said Mr. Quezada. “We also like the solid rate base growth and improving ROEs in ALA’s utility segment and midstream growth coming from Pipestone II. We’ve increased our target price to $35.00 reflecting a higher assumed multiple for AltaGas’ midstream segment.”