
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.
Utilities are out of favor, which presents a buying opportunity. She sold Inter Pipeline and bought this in preference. This is 75% regulated utility in the US, with 25% renewable power generation. It can grow the dividend by 10% every year until 2021 (it is 4.6% now). Announced a joint venture with a Spanish company, which gives it another path for growth. (Analysts' price target is $15.72).
(A Top Pick March 13/17. Up 9%.) An absolute gem, but is cautious with utilities including AQN at least for now. You can hold it for five years and forget about it. If you're a trader, now's a good time to get out, because of overall situation with utilities, rising interest rates and servicing their debt.
The sector is under some pressure. This has had a short-term hit moving down from $14.40 to $13.30. This company does have a pretty good dividend growth, which makes it more attractive than many in the sector. However, it is not going to lead the market. If you are looking for total return, growth and capital plus some dividend growth, you might want to look elsewhere. (See Top Picks.)
Owns this in a few of her client's portfolios, and one she would potentially add to as well. It has pulled back and has a renewable component to it which she likes, because she wants to increase exposure to the renewable space, as well as regulator to the operators in the US. Has an attractive yield. A good name to own.
This has a pretty nice chart pattern this year. There is an upward trend from 2015 with a flag showing this year. The long mast pole it is showing is usually a pretty strong indication of a continuation. There is a lower boundary of around $12.70, where the market is going to come in. If it goes above the $14.60, you will get a break out. If it came down to the lower trend line in the next 3-4 months, he would probably be a buyer.
Utility company. 75% of their profits come through regulated operations primarily in the US. Very stable cash flows. Yield is 4.6%. Regulated utilities have rate cases every so many years, so over time they are allowed to adjust rates if interest rates go up. They are expanding internationally as well. (Analysts’ price target is $15.50)