TSE:TA

Transalta Corp (TA.TO)

19.59
+0.12 (0.62%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
238 watching
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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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Fortis,FTS
DON'T BUY
Issue right now is state of coal generation electricity plants. You can get an income but probably the stock will not move up.
DON'T BUY
Has been a bit of a disappointment. Would rather own TransCanada (TRP-T) or Enbridge (ENB-T) for utility exposure. Expect they will have down earnings year-over-year. 5.5% dividend.
WAIT
Prefers TRP. Has bulk of cash flow from coal-powered facilities. Wait until after Friday to make a decision.
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.
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