
TSE:AQN
This summary was created by AI, based on 26 opinions in the last 12 months.
Algonquin Power & Utilities Corp (AQN) has undergone a significant transformation in recent years, primarily after divesting from its renewables segment to focus on regulated utilities. The sentiment among analysts is cautiously optimistic, signaling an improvement in the company's trajectory under new management, though many acknowledge ongoing struggles with a historically burdened balance sheet and mixed past performances. The stock is currently viewed as a potential turnaround story, with a rangebound trading characteristic and a decent dividend yield of about 4.3% to 5%. While some analysts recommend waiting for clearer signals of recovery, others see a strong technical foundation developing, suggesting that AQN could begin to appreciate in value as it stabilizes and moves towards a more predictable utility profile. General market conditions and broader trends toward renewable energy also present a mixed outlook, hinting at a gradual recovery phase ahead.
He has to lump them with the whole power and utilities sector. They are trading at large multiples to their earnings. These are high capital intensive businesses. He sees them as moderate risk due to the possibility of interest rates rising. They have stable businesses and you get to charge a regular ROE on the power over time.
Was concerned about this a couple of years ago when the US housing market tanked. One of their growth areas was in Arizona. Recently people have started to realize that this is a pretty solid outfit. Good diversification of assets being in Hydro and specialty power production. Good safe stock to be in. Feels the 4.14% dividend is quite safe.
Power business married with a utility business. Probably worth $7 and he would probably nibble away in the low $6’s. Some of their acquisitions have exposed them to a little bit of the merchant power sector, meaning their generation isn’t fully contracted for the long-term but doesn’t think this will be a significant component of cash flow going forward.
His company has an $8 target on this. Yield of 5%. Really good entry point.