Benjamin Pham, an analyst from BMO Capital, maintained the Buy rating on Algonquin Power & Utilities (AQN – Research Report). The associated price target remains the same with $5.00.
Benjamin Pham has given his Buy rating due to a combination of factors including the removal of obstacles that previously hindered the company’s earnings per share optimization, such as high leverage and the sale of renewable assets. The new CEO, Rod West, is expected to accelerate the execution of growth strategies, which is a positive sign for the company’s future performance.
Additionally, Algonquin Power & Utilities is trading at an attractive valuation compared to its peers, with a projected price-to-earnings ratio significantly lower than the industry average. Despite recent financial results falling short of expectations, the market remains optimistic about the potential improvements under the new leadership, particularly in terms of operational efficiency and regulatory lag reductions, which could enhance the company’s earnings power.
According to TipRanks, Pham is a 5-star analyst with an average return of 7.5% and a 64.94% success rate. Pham covers the Utilities sector, focusing on stocks such as Algonquin Power & Utilities, Fortis, and TransAlta.
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