
TSE:AQN
This summary was created by AI, based on 29 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) has undergone significant transformation in recent years, primarily shifting its focus from renewable energy to regulated utilities. While the company has faced challenges, including overleveraging and management changes, recent updates suggest a stabilizing outlook. Experts indicate that there is potential for profitability growth, especially with new management steering the company towards a more predictable business model. Analysts recognize the importance of this strategic shift, as AQN is now seen as cheaper compared to peers in the utility sector, making it an interesting play for future growth and income. However, caution remains as some analysts recommend monitoring the company's progress before committing, given its recent history of dividend cuts and restructuring efforts.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Quite comfortable with it given the growth and valuation compared to peers. One of their preferred utilities names. Better to have it in a registered account for the dividends. Unlock Premium - Try 5i Free
AQN vs. CPX CPX is quite high quality, with pretty good torque to Alberta power prices, so if you expect Alberta prices to rally, this one will benefit. AQN is his preference, as it has more diversity in its asset base. AQN has more robust opportunities for growth, plus more leverage to the renewable utilities build out.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Nothing is significantly different for the outlook. The whole sector has been weak. And AQN raising money through an issue confused investors. Decent growth is still expected. They raised the dividend in May. Not overly expensive while the cash flow remains solid. Fine for income investors. Unlock Premium - Try 5i Free
Attractive dividend with a good growth profile. Good ESG candidate so funds should flow into this. In the last little while, we have seen some decline in the sector. An attractive entry price. There is 1400 additional mega watts of energy coming online. A good rewarder of share holders. (Analysts’ price target is $21.01)