
TSE:AQN
This summary was created by AI, based on 29 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) is currently undergoing a multi-year turnaround focused on becoming a more pure-play regulated utility after divesting its renewable energy assets. The company is predominantly operating in the US, which has prompted plans for redomiciling to attract more US investors and investors appear cautiously optimistic about its restructuring efforts. However, many experts express concerns about the high levels of debt and the modest earnings growth. While there are positive signs of management's improved execution and focus, there is still a prevailing sentiment of skepticism until the company can demonstrate consistent profitability. The stock is perceived as a potential turnaround candidate, but its history of dividend cuts and operational challenges keep some investors at bay.
It's one of the few reliable renewable stocks to invest in. It's reliable, though not a slam dunk like TC Energy because something could happen to it. But it's pretty good and pays a 4.5% yield.
Been rolling over lately. Is there running room to come? Yes, it has rolled over, because they raised money to pay down debt. Now is a buying opportunity. It probably won't jump another third to $24, but the dividend offers a good return. Buy below $18. It needs a US acquisition that they're planning to push the stock up.
Sell Fortis and AQN to buy OTEX? AQN is a great utility; they've done a good job growing. He owns Emera in this space. Utilities have done very well until recently when a trade deal looked possible. He'd own OTEX before AQN, because it has generated a higher return on equity historically. Occasionally, OTEX makes a big acquisition to surprise the market in a good way. OTEX is doing more cloud work, which amounts to wider margins.