Algonquin Power downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Ben Pham downgraded Algonquin Power to Market Perform from Outperform with a price target of $11, down from $17.50, post the Q3 results. Following the reduction in the company’s 2022 earnings guidance, there are likely increasing risks of a dividend cut as Algonquin’s funding needs are still high, Pham tells investors in a research note. Given Algonquin’s "high funding needs and uncertain macro environment, having additional cushion may be warranted," writes the analyst. He sees higher interest rates as "bad news for a capital-intensive company" like Algonquin.