TSE:TA

Transalta Corp (TA.TO)

19.59
+0.12 (0.62%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

Transalta Corp (TA-T) has recently been navigating the complexities of the utility market, reflecting mixed sentiments from experts. Some see opportunities in its strategic acquisitions and growth prospects, particularly in the context of rising power demand due to data centers, especially in Alberta. However, concerns arise regarding its low dividend yield of approximately 1.6%, and its stock price trading below the issue price after recent financing efforts. Experts note the utility's underperformance can be attributed to broader market trends favoring high-growth AI stocks at the expense of traditional utilities. While there are points for optimism, particularly with expected earnings growth and beneficial market conditions, many advise caution and recommend monitoring pending developments before making any investment decisions.

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Consensus
Cautious
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Valuation
Fair Value
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DON'T BUY
Doesn’t see a lot of earnings growth over the next couple of years. Earnings have been depressed because power prices in Alberta have been depressed. Very attractive yield at 5.6%. She prefers other utility stocks.
BUY
Energy producer with coal power being their major source. Should earn in the area of $1.25 this year and possibly $1.40 next. Very healthy dividend of over 5% giving a double-digit return. Decent entry point.
HOLD
Operates an electricity generating unit, primarily in Alberta and dispatches its units when it can do so at a profit. Power prices in Alberta have been low. Expect this stock will trade sideways for the next 12 months.
DON'T BUY
Acquisition of Canadian Hydro Developers was a good tactical move and will give them some good tax planning. Trouble with a lot of utilities as that they are close to their target prices so he is very underweight utilities.
WEAK BUY
Dividend (5%) has chronically been considered not safe but it is not excessive and he thinks it will continue through thick and thin. Company is a bit boring. Solid, good long-term hold.
DON'T BUY
Best part of this stock is the attractive dividend. Problems will continue. Payout ratio is very high – funded through debt. Not a lot of upside on this stock.
BUY
One of their significant positions. Are in for the dividend. Likes the management, (good utility, but not rocket scientists). A good stock to hold if you are looking for a dividend yield and not too much in capital gains.
BUY
Transalta 2020 series bond: Likes the company, well managed and he would recommend these bonds.
DON'T BUY
(Market Call Minute.) Not his favourite utility because they produce a lot of electricity using dirty coal and have a lot of facilities that need replacing.
COMMENT
Opinion on green energy part of their business? This is a relatively new area for utilities so difficult to assess. Likes utilities as most of them have projects that will be able to deliver alternatives without capital (?) going forward. Prefers TransCanada (TRP-T).
PAST TOP PICK
(A Top Pick Jan 2/09. Down 4.17%.) Sold a lot of his holdings. A play on power prices. Correlated with gas prices so if you think gas is going up you could play this.
BUY
Are the bonds a safe investment? Credit profile weakened slightly because they acquired Canadian Hydro and issued a fair amount of debt. Debt to capital was at 52% but is now 57% but hopefully will come down in 2011. Acquisition gave them newer and greener assets. Still an investment grade bond and he likes it.
PAST TOP PICK
(A Top Pick Dec 3/08. Up 8.9%.) Have lightened up on this one and buying more of TransCanada (TRP-T).
HOLD
Growth prospects are fine but not fabulous. Dividend is fine. Still working on how they are going to present and integrate the Canadian Hydro acquisition.
TOP PICK
6.4% bond maturing November 18/19. New issue. Likes the 7 to 13 part of the year curve.
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