Northland Power assumed with a Sector Perform at Scotiabank

Scotiabank assumed coverage of Northland Power with a Sector Perform rating and C$27 price target. The company stands to benefit from the energy transition and significant growth outlook for new wind, solar, and battery capacity globally, the analyst tells investors in a research note. Investors have rotated away from the renewable energy sector given the higher rate environment, supply chain challenges, high leverage, elevated payout ratios, and concerns on return levels, but many of these concerns peaked in 2023 and will likely improve in 2024, says the firm.