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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WEAK BUY
Not a huge amount of growth and is why they bid for the alternative energy play Canadian Hydro Developers (KHD-T). Okay for the 5.3% dividend but she doesn't see a lot of earnings growth.
DON'T BUY
Hurt by decline in power pricing. Would not short of buy, but dividend is safe.
SELL
Have been making a huge attempt to generate carbon offsets. Coal fired plants are a no-no in this things. Have age-old assets. Is skeptical of the company.
COMMENT
Hassled for a number of months from a private equity firm to re-leverage the balance sheet. That is now over so they can now effectively grow their business. Trying to acquire Canadian Hydro Developers (KHD-T). Great balance sheet. Long-term assets with good management. (He owns bonds, not stocks.)
TOP PICK
His macro view is that we are in a deflationary environment. Utility sector is starting to move up in his rankings. Risk/reward is exceptional from here. Looking for $30 over 5 years. 5.5% yield.
COMMENT
Made a hostile bid for the wind farm operator, Canadian Hydro Developers (KHD-T). Probably a good strategic fit for them but the stock will be under pressure. Expect a big debt issue or a fairly dilutive equity issue to pay for it.
COMMENT
Made a hostile bid for the wind farm operator, Canadian Hydro Developers (KHD-T). Being basically 100% coal generated, this would be excellent diversification for them.
COMMENT
Electrical utility, primarily in the West. Not a lot of earnings growth. Power prices in the West have been coming down so earnings are also being brought down. 5.5% yield. Defensive name.
COMMENT
Utility. Has held up well with its yield. If you are yield oriented, this is fine. If you are looking for quick capital gains, this is not it. Not his favourite, but okay.
HOLD
Was probably over-distributing on its dividend for most of this decade but it earned its way into it very successfully. A lot depends on what the carbon tax is going to be.
WAIT
Raised dividend as expected by market. Was under phenomenal pressure compared to piers. Dividend is safe and he lives the yield. Wait for earnings before buying.
BUY ON WEAKNESS
Utilities are a good place to look for yields. Doesn't think there is a huge risk on this one. Earnings are fairly stable. They are into a few new things that are interesting such as windmills. Watch it and buy on dips if you need the yield.
BUY
Has formed a very solid base. 5%-5.5% yield. Would Buy on some expectation that it might go up to $25. $20 would be an exit point.
DON'T BUY
Yield of about 5%. Return On Equity is falling rapidly. Also wants a reasonable debt to cash flow of below 3X or 2.5X. Theirs is 3.6X.
COMMENT
Nice yield. Currently running up against some technical resistance. Would need to bust out of $25.50 to advance much further. His Fair Market Value is about $45.
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