AltaGas Ltd T.ALA.PR.B

Rating Comment

[TimeBuilder]

AltaGas Kept at Outperform at BMO Capital Markets as Q4 Results Lag Expectations; Price Target Trimmed to C$35.00

11:39 AM EST, 03/03/2023 (MT Newswires) -- BMO Capital Markets on Friday maintained its outperform rating on the shares of AltaGas (ALA.TO) while lowering its price target to C$35.00 from C$36.00 after the midstream oil and gas operator reported weaker than expected fourth-quarter results.

"While Q4/22 results missed expectations for the third consecutive quarter, big picture is that ALA still delivered to the top half of full-year guidance, despite higher interest rates and LPG export margin compression. Also, these prior headwinds are moderating and/or well known, esp. in the export business, and new tolling agreements are de-risking cash flows. With shares trading at a discount (forward P/E of ~11.5x vs. utilities at ~16.5x and pipelines ~15x) and dividend growth of 5-7% through 2027, we maintain our Outperform rating and target to $35 (vs. $36)," analyst Ben Pham wrote.

(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: 24.15, Change: +0.64, Percent Change: +2.72

[Undeniable]

Happy to collect the more than decent dividend on this one, exdividend date is next week!