Credit Suisse Reaffirms Outperform Rating on Algonquin Power & Utilities Ahead of Investor Update
January 15, 2023
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Algonquin Power & Utilities ($TSX:AQN) is a North American diversified generation, transmission and distribution utility company. The company has assets in Canada and the United States and serves over 1 million customers. Its portfolio is comprised of renewable energy facilities, hydroelectric facilities, natural gas-fired power generation assets and thermal energy facilities. The company also provides utility services such as steam, chilled water and other services to its customers in addition to its power generation and transmission businesses. On Wednesday, Credit Suisse reaffirmed its outperform rating on Algonquin Power & Utilities (AQN.TO) and maintained its price target of US$11.00 ahead of the company’s upcoming investor update. This reaffirmation comes at a time when the company is exploring new opportunities to diversify its portfolio and expand its presence across the continent.
The investor update is expected to shed light on the company’s current strategy and financial performance. Investors will be looking for signs of progress in the company’s plans to grow its portfolio of renewable energy assets and increase its exposure to more lucrative markets. It is also likely that the update will provide insight into the company’s plans to develop new technologies and expand its customer base. Investors should take advantage of this opportunity to gain insight into the company’s future plans and position themselves for long-term growth.
Price History
Media sentiment is currently positive for the company, and the stock opened at CA$9.7 on Thursday, closing at CA$9.5, a 4.2% decrease from its last closing price of CA$10.0. It focuses on providing essential services to its customers, with a goal of providing clean, safe, and reliable energy solutions. The company has also developed a strong reputation for being a reliable partner in the energy sector, with a track record of successful development and operations. Its commitment to sustainability and environmental stewardship has helped it earn the trust and respect of its customers and stakeholders. Algonquin Power & Utilities is focused on providing services that are tailored to meet the evolving needs of its customers and stakeholders. The company has a long-term strategy of growth and diversification, focused on delivering value to investors.
It has a strong balance sheet and a track record of investing in new technologies and services to build long-term relationships with customers and communities. Algonquin Power & Utilities is committed to delivering safe, reliable, and affordable energy solutions to its customers, while also protecting the environment. With its commitment to sustainable practices and environmental stewardship, Algonquin Power & Utilities is well-positioned to continue to deliver value to its customers and stakeholders in the years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AQN. More…
| Total Revenues | Net Income | Net Margin |
| 2.62k | 29.14 | 9.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AQN. More…
| Operations | Investing | Financing |
| 530.97 | -1.57k | 973.86 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AQN. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.65k | 10.59k | 7.85 |
Key Ratios Snapshot
Some of the financial key ratios for AQN are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.7% | 10.9% | 5.5% |
| FCF Margin | ROE | ROA |
| -25.2% | 1.6% | 0.5% |
VI Analysis
Company fundamentals are a great way to evaluate a company’s long-term potential and the VI app makes it easy to quickly assess a company’s performance. According to the VI Star Chart, ALGONQUIN POWER & UTILITIES is strong in dividend and growth and medium in asset and profitability. This makes the company a ‘cheetah’, one which has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for high returns and are comfortable with higher risk may be interested in ALGONQUIN POWER & UTILITIES. The company has an intermediate health score of 4/10 with regard to its cashflows and debt, which means it is likely to safely ride out any crisis without the risk of bankruptcy. Overall, ALGONQUIN POWER & UTILITIES is a company that is high in growth and dividends, yet medium in asset and profitability, making it appealing to investors who are comfortable with higher risk. The company also has an intermediate health score, making it relatively safe from financial crises. More…
VI Peers
Algonquin Power & Utilities Corp is a leading renewable energy company with a strong focus on growth through acquisitions and development. The company has a diversified portfolio of renewable energy assets across North America and Europe. Clearway Energy Inc, CEZ a.s, Drax Group PLC are among its major competitors.
– Clearway Energy Inc ($NYSE:CWEN.A)
Clearway Energy Inc has a market cap of 3.7B as of 2022, a Return on Equity of 47.1%. The company is engaged in the business of providing power generation and storage services. It owns and operates a diversified fleet of renewable energy power plants in the United States.
– CEZ a.s ($LTS:0NZF)
CEZ a.s is a Czech Republic-based electricity producer and distributor. The Company operates through eight segments: Electricity Production, Transmission, Distribution, Trading, Coal Mining, New Technologies, Other Energy Sources and Services. The Electricity Production segment includes brown coal-fired, nuclear-powered and combined heat and power plants (CHPPs). The Transmission segment comprises high voltage and extra high voltage electricity transmission networks. The Distribution segment includes medium voltage electricity distribution networks. The Trading segment focuses on electricity trading, including retail and wholesale trade. The Coal Mining segment includes hard coal and lignite surface mines. The New Technologies segment engages in the development of new sources of energy. The Other Energy Sources segment focuses on the production of electricity from renewable sources. The Services segment offers a range of services.
– Drax Group PLC ($LSE:DRX)
Drax Group PLC is a holding company that, through its subsidiaries, engages in the generation and sale of electricity in the United Kingdom. The company generates electricity from biomass, coal, and gas-fired power stations. It also supplies electricity to businesses and households through the national grid. The company was founded in 1987 and is headquartered in London, the United Kingdom.
Summary
On the day of an investor update, Credit Suisse reaffirmed their ‘Outperform’ rating for Algonquin Power & Utilities. Despite the positive sentiment from investors, the stock price declined the same day. It is important for investors to consider the long-term potential of an investment in Algonquin Power & Utilities based on the company’s past performance, current market conditions, and future outlook. It is always beneficial to research the company thoroughly before investing as no investment is guaranteed.
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