
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 after facing significant challenges related to high debt and management changes. The company has shifted its focus primarily to regulated utilities, moving away from renewable energy ventures that did not yield the expected results. Despite these changes, experts express caution due to ongoing financial challenges and a still-high debt load; however, some analysts see potential for future earnings growth. Recent strategic decisions, including the sale of renewable assets and potential redomiciling to the US, are aimed at simplifying operations and improving investor confidence. While AQN has garnered recent analyst upgrades, the overall sentiment suggests that it remains in a 'penalty box' phase, waiting for clearer evidence of management's success in execution and profitability.
AQN-T vs. NPI-T. He likes the sector. It is not a pure utility play. AQN-T has a nice upward trend. They have come off a little bit. They diverged since July. He is looking at whether they will come off a little more. Sept and Oct tend to be the worst performing months.
During low interest rates as a safe haven? This time of year, be defensive. Momentum isn't great. Utilities are good. Good year over year revenue growth, which is unusual for a utility. AQN is reaching end of seasonality from mid-May to late-August. It's holding 20/50/200-moving averages. Hold until end of seasonality. Emera and Fortis' seasonality starts in July, so maybe rotate to these.
A recession-resilient business that's growing well. It's cheaper than its peers and pays a growing dividend. They have a number or pojects driving growth, which he forecasts at 11% and 10% annual dividend growth, at 16.3x earnings (cheaper than Fortis and Emera). Has a steady payout ratio, so the dividend is safe. The dividend will pay you well in a recession. This is a long-term play on clean energy. (Analysts’ price target is $17.08)