TSE:AQN

Algonquin Power & Utilities Corp (AQN.TO)

8.24
+0.14 (1.73%)
as of Jun 4, 2026, 6:21:20 pm Market Open.
1398 watching
0
Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Algonquin Power & Utilities Corp (AQN-T) has seen a significant transformation recently with a strategic focus on regulated utilities, moving away from its less successful renewable energy ventures. Many experts highlight that the company is undergoing a multi-year turnaround, with new management actively working to improve the business and restore investor confidence after a rough patch that included dividend cuts and restructuring challenges. The analyst community is becoming increasingly optimistic, as AQN has started to show promising technical signs and several upgrades have been issued recently. Although concerns about high debt levels and previous mismanagement remain, many believe that AQN's shift toward a more stable utility model will enhance its growth potential and generate predictable income for investors. There’s cautious optimism about its future, with some viewing it as a potential takeover target given its current valuation relative to peers.

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Consensus
Positive
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Valuation
Undervalued
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BUY ON WEAKNESS
Not cheap, but still a buying opportunity. Canadian utilities have sold off with the threat of rising rates. Raised equity for its acquisition. These are 2 overhangs on the stock. Still upside. Lots of growth, underpinned by cashflows. If it dropped another 10-15%, he would aggressively accumulate shares.
BUY
They have 35 years to go to be the next Fortis, but they're on the right track. The stock has dropped because of a big, unsurprising acquisition of Kentucky Power and did an equity issue. Long-term tailwinds are the greening of the energy grid and short. Renewable power stocks ran up after Biden was elected, then pulled back earlier this year. That froth came off. All headwinds are temporary though. He's been buying at current levels and believes in it long-term. The grid is becoming greener. He's positive all green energy stocks. AQN pays a steady dividend.
SHORT
Shorted it on poor price momentum and valuation. It is expensive. When interest rates move higher, they are hurt as a bond proxy. Still not cheap enough. 1.8x book value. Has good yield approaching 5%. Balance sheet is okay compared to other utilities but it is expensive.
WEAK BUY
A market darling, but got ahead of itself, consolidating since 2020. Yield in the high 4s, respectable. Going forward, it will recover and reflect the growth of the underlying assets. Could be a buy here.
BUY
AQN vs. H He's been adding. Valuations have come back in the renewables, with more upside in the next year or two over basic fossil fuel companies. 4% dividend yield, valuation is good. Kentucky Power acquisition is another leg of growth.
BUY ON WEAKNESS
Issued equity to fund an acquisition. Great income stock. Dividend will increase over time. Likes the renewable power business. Hoping to green the fleet over time. For all utilities, look at cashflow per share, not EPS. She added on the pullback.
HOLD
It has been a great utility stock to own over the last decade. They have been more aggressive than others. They are also aggressive on growth through acquisition. He prefers to be more on the safe side. There is now new management in place so he is watching it. It looks good so far. He would consider it a hold.
N/A
He is unable to talk about it today, but owns it.
BUY ON WEAKNESS
Debt from takeover of Kentucky Power. For the past 10 years, stock's traded between 1.5x and 2x book value. His low target is $16. He wouldn't touch it right now. Balance sheet is not a powerhouse, but utilities don't have to have one, as returns are regulated. He doesn't worry too much about the balance sheet of utilities. Such a beautiful trading pattern, he'd buy at the lows.
BUY
Share issuance for the new acquisition will be somewhat dilutive, but you're issuing capital to buy growth. For new money, it's at a discount. Longer term prospects are quite attractive. Continuing to add for clients. If you own it, keep it.
BUY ON WEAKNESS
Shares have really come off Well-run, focusing on green power which is a growth area for the coming decade as the world moves away from carbon power. They do issue equity, so the stock has come off. There are concerns over weak wind power conditions in Europe, which has pressured the entire sector, but he isn't worried. Also yields have inched up recently and could in the future, but such pressures will be temporary. AQN pays a good dividend. Buy in dips.
WATCH
It is still a name he does not own. He sold a couple of year ago because he saw better value elsewhere in the space. He is watching it. He has not pulled the trigger to buy it back.
PAST TOP PICK
(A Top Pick Sep 25/20, Up 3%) Disappointing performance, coming off with the rest of the renewables. A lot of negativity in the sector, but it won't last. Renewables still lead the pack in terms of growth in the sector. See his Top Picks.
TOP PICK
Great mixture of regulated utility assets with strong, stable cashflows along with development arm for renewables for public and private buyers. Everyone is being pressured to have cleaner energy. Good development opportunities at premium prices. The world is short of power. Yield is 4.67%. (Analysts’ price target is $21.60)
BUY
Renewables will continue to grow, especially as they're well positioned in the US as they green out their fleet. About 90% of earnings comes from the US. As a utility, she doesn't expect double digit gains. She owns it for the yield and a bit of capital appreciation, which has been a bit disappointing. Higher interest rates is a headwind. Attractive yield, which should grow annually, will act as a buffer to inflation. Buy it here and hold.
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