TSE:TA
Transalta Corp (TA.TO)
Financials 
Technical Analysis 
Sep 3, 2026, 12:00 amThis summary was created by AI, based on 13 opinions in the last 12 months.
Transalta Corp (TA-T) is currently navigating a mixed market sentiment, influenced by its recent strategic acquisitions in Colorado and the broader dynamics of the utilities sector. Experts note the company's trading range and potential breakout possibilities, amid an environment of increasing energy demand, particularly from data centers in Alberta. While some analysts appreciate the long-term growth trajectory suggested by discounted cash flow models and future EPS growth of 50-60%, concerns linger regarding its low dividend yield and the potential impact of interest rate sensitivities. Consequently, although there are positive indicators and excitement around AI-driven power demand, a cautious approach is recommended until the market settles and confirms the value of the recent acquisitions.
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Premium content
Premium contentLong a favourite of Stockchase Michael O'Reilly, this Alberta renewable energy company sank over 2% during April's tariff-induced slide. The sell-off helped to halve TA's PE of 40x from last September, and is now trading far lower than the industry's 33x. Even better, is the confident forward PE of 33.57x. Other qualities: a low beta of 0.55 and low payout ratio of 40% to support the 2.12% dividend yield. True, that yield lags its peers by 150 basis points or more, but TransAlta's ROE is 25.3%, towering over the sector's 8.97%. Anchored by strong free cash flows, the company is aggressively buying back shares as institutional shareholders own 67% of this stock. Lower interest rates are a tailwind for the entire sector
Premium contentTA holds a basket of high-quality power generation facilities including renewables. The company is prudently using some cash reserves to aggressively retire debt and buy back shares. It trades at 21x earnings and supports a 25% ROE. We recommend setting a stop-loss at $9.50, looking to achieve $16.00 -- upside potential of 28%. Yield 1.9%
(Analysts’ price target is $18.33)He's looking at it. It's softened up considerably. Decent dividend payer, cut a few years ago but now back on track. High-quality company with share price having sold off. An opportunity, but he hasn't pulled the trigger yet.
Spike on chart due to strong earnings and a bunch of analysts giving it a "Buy". Got ahead of itself. Disappointment recently. He doesn't like buying at all-time highs, where there's often more downside than upside.
Premium contentOur PAST TOP PICK with TA has triggered its stop at $16. To remain disciplined, we recommend covering the position at this time. Combined with our previous guidance, this will result in a net investment gain of 46%.
Premium contentPremium contentPremium contentPremium contentHas been rallying the last 3-4 months based on rate cuts. Has exposure to the Alberta power market which has seen prices under pressure since 2022. Prefers Capital Power.
Jamie Murray Ton of drama for many years. Exciting play when it separated out RNW, but then they put them back together. Underperformed since then. Not a bad name, but doesn't have the nice dividend that others in the space do.
Not the first place he'd put money. Dead money absent other catalysts. On a really sharp pullback, you could add. If you own it, it's a fine hold.
Premium contentWe reiterate this Canadian based developer of renewable energy as a TOP PICK. They recently announced the startup of a 200MW wind project in Oklahoma that is fully contracted - their 30th successful wind project. Shares trade at 12x earnings and support a robust 33% ROE. Quarterly cash reserves are growing again, while debt is retired and shares bought back. We continue to recommend a stop at $8.50, looking to achieve $13.00 -- upside potential of 26%. Yield 2.2%
(Analysts’ price target is $13.75)Premium contentThe Alberta based power generator holds a diverse portfolio of power generation assets in the US, Canada and Australia including 50 renewable projects with many new projects on the list. It trades at 12x earnings, 3.5x book and supports a 33% ROE. The modest dividend is supported by a payout ratio under 15% of cash flow. We recommend setting a stop-loss at $8.50, looking to achieve $13 -- upside potential of 30%. Yield 2.3%
(Analysts’ price target is $13.69)
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Our PAST TOP PICK with TA is progressing well. To remain disciplined, we recommend trailing up the stop (from $9.50) to $11.00 at this time.