TSE:AQN
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Nervous markets await NvidiaThis summary was created by AI, based on 23 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) has faced significant challenges in recent years, including dividend cuts, high debt levels, and a controversial acquisition attempt. However, many experts see potential for recovery as the company strives to reposition itself as a pure-play distribution utility by divesting renewable assets. New management is encouraging, and several analysts believe the turnaround plan could lead to growth once executed successfully. Despite the negative sentiment surrounding the stock, some experts note it is currently undervalued compared to peers and may offer upside in the future as the company resolves its structural issues and gains regulatory approvals for various rate cases. Overall, patience is recommended as the potential for a rebound hinges on execution and market sentiment improving.
Downtrend for last couple of years. Appears it broke out of that downtrend in March/April, so far so good. Since then, quietly working its way higher with higher lows. Lower interest rates are supportive for utilities in general. If it went above ~$8.50, it would look really good. Even at this level, seems to have bottomed out.
Last quarter was in line, on track to meet 2025 guidance. At 13x for 2027, not that cheap relative to the energy infrastructure group. Priced about the same as GEI, with a similar growth profile of 18%. Worst days are behind it.
You don't have to win on every stock. He'd rather put new $$ into GEI, KEY or ALA, simply because they're higher-quality players. But if you buy this one down here, thinks you'll win in the next year or two.
The chart for AQN tells the story for the sector.
Seeing signs of improvement. Both AQN and NPI have moved above 200-day (40-week) moving average, a positive. Especially so because a lot more quant funds are moving $$ in the markets, and one of the triggers they look at is whether or not it's above that technical level. It it's above, they can buy it; if not, either they can't buy it or they short it. Likes the regulated utilities -- FTS, H, EMA, CU, CPX.
If he were less cautious, he'd be more bullish. Not a big fan. More of a value play. Technically, they've been laggards. Better places to put your $$.
Sold off renewables (still owns some hydro), transitioning to pure-play utility. Stock was up 10% after last month's investor day, so it appears that investors believe in its back-to-basics strategy. Up 20% YTD, outperforming others. Demand for energy continues to increase. This company isn't going anywhere, and it has the best valuation amongst peers.
Turnaround story. She's holding, though may not own it forever.
Fallen angel. Always looks cheap on any metric. Built with unique assets spread out around the US, so not really an attractive takeover target. Don't hold your breath on that hope. Still slightly capital-constrained to be able to go after growth opportunities. Will be range bound, limited upside. Use pops in the stock to exit.
AQN is cheap, trading at 11.8X forward EV/EBITDA and 1.0X book. Its assets are likely worth more individually than its current market cap, making a good case for the sum-of-parts equation. But, management has recently outlined a plan to turn the company around, and acquirers generally don't like buying during recovery phases. We think if its price stagnates around these levels for several months, it would more likely become a takeover target.
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He was talking just this morning to the fundamental analyst on this name, who's seeing signs of improving sentiment. Technically, starting to see the downtrend firm up across the entire space by putting in lows. Starting to see higher highs and higher lows.
Look at the 1-year chart. Big pop-up on earnings a couple of days ago. Definitely expect some near-term consolidation, but after that we're in an uptrend and he'd expect that to continue.
Estimates are 9.7c EPS and $651.8M revenue. The company has missed five of the past eight quarters. The stock is up 16% this year, as investors have shifted to safety and dividends. Valuation is still on the high side at 18X earnings. We would not miss it much if sold. We do not like making buy/sell decisions on one quarter, and would be fine exiting now. Getting a stock with 50% upside will add risks, and trying to 'replace' losses is not always advisable. We would prefer ENB in the utility-like sector, but for high growth we would look to CLS or SHOP or VHI, but only if one is comfortable with added volatility.
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Bounced off the bottom; actually one of the best-performing utilities because it traded so low for such a long time. Attempt to acquire Kentucky Power was bad timing with interest rates going up. Host of other issues, market penalized them, and it continues to do so.
But if you look at it today, it's working hard to transform itself to a pure-play distribution utility (similar to EMA or FTS). That's the cheapest type of utility to own. Sold renewable assets. Still owns hydro, but that's a small percentage of assets. Likes diversity of jurisdictions. About 10-20 rate cases under review; as they get approved, will see uptick in earnings. New CEO, activist investor.
Believes all the negative news is out of the name. If you have the patience, there's only upside from here. As company continues to execute, positive investor sentiment should come back. Different company than it was 2 years ago.
Dividend investing is for 30, not 3 years, to survive ups and downs. AQN has been very difficult in the last 3-4 years. But new management has sold off their renewables business. Also, he's very positive with companies that have a lot of US business, like AQN. When a re-rate comes, things will start to move up all at once. He sees upside in AQN, though doesn't know where. His average cost base is $12, and he's been buying all along.
Algonquin Power & Utilities Corp is a Canadian stock, trading under the symbol AQN-T on the Toronto Stock Exchange (AQN-CT). It is usually referred to as TSX:AQN or AQN-T
In the last year, 17 stock analysts published opinions about AQN-T. 9 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Algonquin Power & Utilities Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
17 stock analysts on Stockchase covered Algonquin Power & Utilities Corp In the last year. It is a trending stock that is worth watching.
On 2025-10-03, Algonquin Power & Utilities Corp (AQN-T) stock closed at a price of $8.08.
Sold most of its renewable assets, except for hydro. Water utilities in the US. Rate cases coming up always make analysts nervous in case rate increases are denied. New CEO trying to turn things around. Debt levels are a bit high.
Old management expanded things too rapidly. Dividend was cut. Talk of redomiciling to the US, but might be too small to be on the US market. He'll monitor it.