TSE:TA

Transalta Corp (TA.TO)

17.69
-0.31 (1.72%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Transalta Corp (TA-T) has garnered mixed opinions from analysts regarding its investment potential. While some experts view the company's strategic asset acquisitions positively, recognizing potential growth driven by the increasing demand for energy, particularly from data centers in Alberta, others express concerns about the stock's current valuation amid changing market dynamics favoring growth stocks. The company's dividend yield is deemed low, raising questions for income-focused investors, and its history of dividend cuts has left some hesitant. Yet, there is optimism regarding its reasonable PE ratio and expected EPS growth of 50-60% over the next couple of years, suggesting potential upside. Nonetheless, competitive pressures from AI-driven innovations and market preferences remain critical considerations for the future performance of Transalta Corp.

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Consensus
Cautious
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Valuation
Fair Value
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DON'T BUY
Not a huge fan of utilities here. Economy is reviving. This is the time to be in resource companies, tech companies, and energy companies. Trading closer to its value. 16 or 17x. This is not where the value is today.
BUY
Well worth holding because of its yield situation. Expect it will be solid for you. Boring.
COMMENT
(Market Call Minute.) Not a bad yield play. The spread of the cost of manufacturing electricity and what you sell it at is moving in their favour.
DON'T BUY
Stock has meandered sideways for the last couple of years. Very good dividend so if you're looking for a dividend play it’s a great play. If things are getting better in the world, as he expects, it probably won't perform as well on a relative basis.
TOP PICK
Stayed away for a very long term and then an interesting thing happened. Forecasts are making a U turn so he has recommended the stock. It is not exciting but it sure has heck has done better than the TSX itself and is looking for a nice bounce in the stock and a nice yield.
WEAK BUY
Good dividend yield. Company has struggled to get proper utilization of its capital. Has not been his favourite utility. Favours TRP, ENB and others. It has a base and Alberta is growing so he is less negative about it and previously.
DON'T BUY
Not certain that it has found its bottom yet. Have had some well-known problems over the last year or 2, which is pretty much discounted in the stock. Not sure what the catalyst is to move the price up again. Management has not delineated to investors’ satisfaction what they plan to do to improve the earnings profile.
HOLD
Utility that is pretty well managed. Good yield. Has pretty reasonable long-term growth. Nice stock to hold when the market is volatile.
DON'T BUY
Utilities do not have the volatility of pipelines. (He owns the bonds and is quite comfortable with it.) They want to maintain a 30% market share in Alberta but they always have to deal with shutdowns and expect there will be some next year. Have to spend a ton of CapX on their plants in 2012. Prefers others such as Enbridge (ENB-T).
COMMENT
Yield of 5.29%.New CEO. Assets are OK. Their problem is how they can grow. Alberta coal assets come off over the next 5-10 years. The assumption is that the will replace the coal assets with natural gas. No dividend increases for quite a while but they can maintain the current one.
BUY
Payout ratio is a little scary but they've held their dividend before and he thinks they will do it again.
DON'T BUY
Owns the bonds. Did break out but from a fundamental perspective it is s lifted because of the interest rates. They are closing down a power plant and that could be expensive. Not his favourite utility.
TOP PICK
Had a major bottom in early 2009 with a little bit of a rising bottom. It is almost a V extended bottom. In a major trading range and has just broken out. About a 6% dividend.
DON'T BUY
Warm to the utilities. He owns man others. He didn’t think management was as good as others, nor some of the assets. He prefers a clean utility, assets that are not economically sensitive and dividends that rise.
TOP PICK
Likes it because it bounced from where it was in a trading range. Excellent risk to reward. The company has guided higher. Fantastic yield.
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