TSX:ALA - Post Discussion
Post by
TimeBuilder on May 28, 2022 8:34am
FYI: Scotiabank Comments
03:04 PM EDT, 05/27/2022 (MT Newswires) -- Scotiabank on Friday reiterated its outperform rating on the shares of AltaGas (ALA.TO) and raised its price target to C$34.00 from C$33.00 after the company agreed to sell two Alaskan utilities for US$800 million.
"Positive. We resume coverage following AltaGas' announcement regarding the sale of its Alaskan utilities, ENSTAR and CINGSA, to TriSummit Utilities Inc," analyst Robert Hope said in a note. "The sale does not come as a surprise as we had previously highlighted this as a possible transaction in March. The US$800m sale price is quite a bit higher than we expected, and is a positive for the company's balance sheet and funding plan. We estimate that the transaction is ~$0.03 dilutive to 2024E EPS, but more importantly, is ~$1/sh accretive to our valuation and helps de-lever the balance sheet. Leverage has been a concern for some investors (not us though) and this transaction will move down debt-to-EBITDA in 2024E by ~0.4x."
(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: 30.55, Change: +0.27, Percent Change: +0.89
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