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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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.
TOP PICK
4.3% dividend yield. Valuation has been beaten up. Levered to Alberta with strong margins. Continued demand.
BUY
Hedge fund investors wanted to acquire at $39 so stock went up. That is now off the table so it has pulled back. Always paid $1 whether earnings went up or not. Earnings are finally up this year over last and going up in the next couple of years and dividends are forecast to increase.
TOP PICK
Could see this easy trading in the mid-$30 range. One of the few pure play power generation companies out there. You have dividend support and a lot of upside.
COMMENT
Getting back to reasonable value but not dirt-cheap for a utility. At a level that you don't have to worry about it quite so much anymore. 4.5% yield.
HOLD
Dividend is likely safe. Have a high debt load but have been paying out a fairly high percentage of their earnings as dividends for some time. In an area where the population growth is going to be above the national average.
DON'T BUY
The perennial question is how safe is the dividend. There have been on-going debt concerns and an aborted deal they tried to do a while ago. He is concerned about the sustainability of the dividend.
COMMENT
Has grown its way into its high dividend. And now it's able to do some of the things it needs to address its carbon imprint. 3.6% yield.
HOLD
There is an offer on the table to negotiate from 2 of their major shareholders. The talk is around $39. On its own, the stock is not cheap at 15X earnings.
COMMENT
Going through a possible takeover, which he thinks will happen. Cash flow is going to be there. Solid revenue generators.
HOLD
If you own, he would hold for the time being until there is a better sense of the take-out potential. If you don’t see anything further coming, then he would consider selling.
HOLD
Has been a bid for a takeover. If you own, you could take a bit of profit in case the deal falls apart but it looks like it is going to happen.
BUY
The street has loved to hate it. The company is well managed. They have a good yield. Not going to cut the dividend, they’ll probably grow it.
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