09:44 AM EST, 11/10/2021 (MT Newswires) -- RBC Capital Markets on Wednesday reiterated its outperform rating on the shares of Algonquin Power & Utilities (AQN.TO) with a US$18.00 target price following the company's US$2.85-billion purchase of Kentucky Power.
"On the surface, it may seem counterintuitive for a utility and renewable developer with strong ESG credentials to acquire a vertically integrated utility with significant coal-fired power assets. However, we believe that once investors dig into the details, they'll see the strategic rationale and the opportunity for significant rate base and earnings growth," the investment bank said in a report. "We are reiterating our Outperform rating and believe the market will gradually warm up to the pending $2.8 billion Kentucky Power acquisition."
(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: 18.00, Change: +0.23, Percent Change: +1.29