Analyst Benjamin Pham of BMO Capital maintained a Buy rating on ATCO Ltd Cl I NV (ACO.X – Research Report), with a price target of C$56.00.
Benjamin Pham’s rating is based on ATCO Ltd Cl I NV’s strong growth prospects and favorable valuation. The company’s Q4/24 earnings exceeded expectations, driven by robust performance in ATCO Energy Systems and the Corporate segment. Additionally, the utility rate base growth expectations have been raised, with Structures showing a stronger start in 2025 compared to 2024, and Neltume providing consistent earnings.
Despite these positive developments, ATCO’s shares remain undervalued compared to its utility peers, trading at a lower price-to-earnings ratio. This discrepancy presents an attractive investment opportunity. Furthermore, the increased capital expenditure plans for ATCO Energy Systems suggest a higher growth trajectory, aligning closer with industry peers. These factors collectively contribute to the Buy rating, with a target price increase to $56.
Pham covers the Utilities sector, focusing on stocks such as Fortis, Emera, and TransAlta. According to TipRanks, Pham has an average return of 7.3% and a 63.83% success rate on recommended stocks.
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