Algonquin Power reinstated with a Neutral at JPMorgan

JPMorgan analyst Richard Sunderland reinstated coverage of Algonquin Power (AQN) with a Neutral rating and $7 price target following a period of restriction. The company has taken steps to reposition around an effectively pure-play regulated utility model, including announcing the sale of its non-hydro renewables business, the analyst tells investors in a research note. The firm says that while Algonquin “looks cheap” at its current double-digit discount to regulated electric peers on 2027 estimated earnings, the execution risk associated with its large rate cases screens as above average, and earnings remain depressed in the near term.