Northland Power Inc (Ontario) T.NPI

ATB

[retiredcf]

ATB Capital Markets’ Nate Heywood reduced his target for Gibson Energy Inc. (“sector perform”) to $25 from $26 and Northland Power Inc. ( “outperform”) target to $48 from $50.. The averages are $25.21 and $44.87, respectively.

[BayWall]

Looking at the consensus stock price target of $44.87, there's been a disconnect for some time now for Northland. I read some-place that these price targets are into the future and not immediate in horizon. Do the stock analysts, when establishing their targets, account for further stock dilution going into the future? Also do they assume that current stock price targets would involve

[Dibah420]

Price targets are based on whatever analysts input into their spreadsheets.  IOW  GIGO is a possiblity. To get some cover, the target period is well into the future  usually 12 mths sometimes 18 mths. It is hard to predict dilutions or take them into your calculations  as companies usually suprise the public and their shareholders. In the context of dilutions ATMs are of a

[BayWall]

For Northland to grow, they will have to take on more debt. Interest rates will play a role as will hedging programs. What assumptions do analysts have to make in regard to future interest rates? Example of an analyst in the UK commenting about a windfarm developer SSE. Fixed vs variable term loans come into play also. Very difficult to predict one year ahead, let alone 6 years. Another concern

[BayWall]

I can't even make sense of what the analyst is talking about--Mr. Heywood says in a note: "Ahead of the Q1/23 reporting season, we have revised several of our estimates to capture current macro trends and product pricing considerations. In general, we expect midstream names to benefit from volume growth across the WCSB but expect modest pricing impacts for marketing and commodity-exposed

[Possibleidiot01]

Analyst obviously covers mid stream oil companies like AltaGas etc. and probably merchant power producers like Capital Power and Northland Power.