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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Fortis,FTS
DON'T BUY
Most of their power plants are based on coal. Coal power plants are being phased out across Canada. They’ll have to look for other sources.
DON'T BUY
Has been paying out a lot of its earnings and in some cases has paid out more. Hasn’t recovered from its big fall in 2008 because there isn’t much possibility of dividend growth. If you are going to choose a utility, this wouldn’t be most people’s choice.
TOP PICK
Stock is cheap compared to its own long-term record. Has a nice dividend. Earnings forecasts are starting to turn back up again. There is support from analysts, markets.
BUY
Owns it in Income Now portfolio. Good dividend payer. Coverage of dividend is solid. Not a lot of potential for growth in dividend, however.
TOP PICK
6.4% bond maturing Nov18/19. Investment grade. Gives you 2% above government of Canada bonds.
BUY
Chart shows long-term resistance. Has gone back to the bottom of its trading range. That is the time you want to buy. You won't get a large capital gains but if looking for a consistent yield with relatively low risk, this is a good investment.
HOLD
Model $17.90, 14% negative differential. Dividend $1.15, with earnings estimate of $1.16. Next year is $1.24. 5.5% yield. Investors are there for the yield. If interest rates spike, these stocks are vulnerable.
PAST TOP PICK
(A Top Pick June 4/10. Up 10.7%.) This was bought strictly for the dividends. Doesn’t expect a huge amount of capital appreciation. Will buy when it gets close to the $20 range and trade out when it gets close to $24.
COMMENT
Chart is flat. In a trading range and there is no particular reason to believe it is going to go above or below its range. The key is that it is a nice high yielding security. You own this for yield, not capital gains.
HOLD
Would not expect dividend increase for the next couple of years. Are paying out pretty much as much as they can – all of the earnings and some cash flow. They can maintain it, however. Decent yield.
DON'T BUY
Has this decrepit coal fired plant that needs to be turned around. He prefers Moore Capital Power. Prices are so suppressed right now, if they go up, TA will benefit.
COMMENT
Good management but not great. Has under performed. Had an earnings miss last quarter. Also had some issues with Alberta power plants. Prefers it on the debt side through bonds. Consider Enbridge (ENB-T) or Atco (ACO.X-T) instead.
SELL
Down on the year and has been flat for 9 months. Power prices in Alberta have not done particularly well. A lot of people own it for the yield play but there are a lot of yield plays with growth.
DON'T BUY
Has had a long rocky road. Decent company but is vulnerable to competition in the electricity market in Alberta. Doesn’t see it as a screaming bargain even at this low rate.
COMMENT
Prefers Canadian Utilities (CU-T), which is in similar real estate and similar space with superior management and a better mix of assets. 5.4% yield, which is nice. If he owned, he would consider lightening up during 2011. The more regulated a utility, the slower response to price increases.
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