TSX:AQN - Post Discussion
Post by
davgro on Jan 13, 2023 1:20pm
Kept at Outperform at Credit Suisse; Target Cut to US$10.50
Algonquin Power & Utilities Kept at Outperform at Credit Suisse After Dividend and Spending Cuts; Price Target Cut to US$10.50 2023-01-13 11:16:27 AM ET (MT Newswires)
11:16 AM EST, 01/13/2023 (MT Newswires) -- Credit Suisse on Friday reiterated its outperform rating on the shares of Algonquin Power & Utilities (AQN.TO, AQN) while lowering its price target to US$10.50 from US$11.00 after the company took steps to shore up its balance sheet by cutting its dividend and cutting capital spending, among other measures.
"Algonquin Power & Utilities Corp took some clear (and largely expected) steps to help re-gain investor confidence, in our view," the investment bank noted. "Some of the actions may have been on the lighter side of expectations (i.e. the low end of the dividend cut) and some questions were raised on future earnings growth along with the magnitude of selected headwinds. These dynamics combined with some potential technical and retail flow factors translated into a ~3.5% negative return on the day for the stock. In our view, the re-rate potential is meaningful - albeit the road is likely to be rocky. In any event, a compelling value at the core of the asset base and a path of catalysts ahead translates into a very interesting situation for return potential. As a result, we reiterate our Outperform rating and keep focused on the re-rating roadmap ahead."
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