
TSE:CPX
This summary was created by AI, based on 16 opinions in the last 12 months.
Capital Power (CPX-T) has garnered mixed reviews from analysts regarding its growth potential and market positioning. The company aimed to capitalize on the demand for data centers in Alberta, inspired by expectations of significant deals that ultimately did not materialize. While some analysts acknowledge its strong management and attractive dividend yield, concerns persist about its valuation and reliance on electricity market fluctuations. The stock has shown stability amidst rising power demand, particularly in the U.S., but some experts suggest looking at other opportunities in regulated utilities and express disappointment in its slower-than-expected dividend growth. Overall, CPX is viewed as a reputable utility play with strong future growth prospects influenced by the AI sector, yet it faces challenges in fully capitalizing on its opportunities.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Good dividend yield of 4.5%. Recent acquisition of Mid-land Cogen Facility. Management increased FY2022 guidance. Long-term strategy to shift towards renewable energy. Unlock Premium - Try 5i Free
CPX vs. AQN Quite high quality. 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.
Own this as well as a renewable? A utility focused in Alberta, but are shifting away from coal towards renewables. It trades at a lower valuation because people are afraid of the Alberta exposure, but he sees good growth ahead as they add more contracted projects. You can own both a BLX or NPI as well as a conventional utility like CPX or CU.
They successfully transitioned from coal to gas and other green energy. An excellent long-term performer, but 27% over 3 years. Was up last year in a down year.