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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Similar
Fortis,FTS
HOLD
This name is a hold here. Not overly optimistic about entry here. Power prices have been weak in Alberta, which is their dominant market.
COMMENT
Hitting an all-time record high. Trend has been very favourable and he thinks it should continue and should have a lot more potential.
TOP PICK
Stoploss is at the recent low. Wouldn't want to buy this today as much as if it broke out beyond $34. Buy at $35.
BUY
If you are going to own equities through a difficult economy and market, yield is something you should look at. There are a bunch of companies in the Canadian market that have hung on pretty well. Look at TransCanada (TRP-T), Transalta (TA-T), Fortis (FTS-T) or an Enbridge (ENB).
DON'T BUY
It is an utility stock. It had trouble a few years ago and has not been forgiven by the street. It has been in the highest growth area especially Alberta. The demand for power is very strong. It has been a great stock but it is a little high to buy. He prefers a cheaper utility stock like Fortis or Amira.
SELL
Best example of a pure play merchant energy utility in Canada. Isn't under a regulated regime. Vast majority of its revenues come from buying natural gas on the open market, converting it into power and selling the power into the grid. Ran up recently because of speculation of private equity buying it. Too expensive.
BUY
Technically it has broken out to new highs. While it may pull back a little bit, it is very much in an uptrend and looks like it wants to head higher. 3.25% yield.
COMMENT
Has moved up sharply because of possible takeover possibilities. If that happens, there will be a 10% upside, otherwise a 10% loss. Operationally, they do a good job. Have power generation in Canada, US and Mexico. Fully valued.
STRONG BUY
A lovely uptrend. Utility stocks are in an uptrend as well. It had a lovely uptrend in 2005, it consolidated in 2006 and now it's going to go again.
HOLD
Had a bit of an incident this week with Transalta Power LP (TPW.UN-T) putting itself up for sale. Doesn't think this matters too much. Nice dividend.
DON'T BUY
Sold his holdings about a year ago. Has a very high yield, probably because it is the riskiest utility company in Canada. Has no growth right now. Have some operational problems in northwest US. Totally coal, so there are some environmental issues.
HOLD
This is a merchant energy company that takes price risk. Not a regulated utility. Because of that, the price of gas has to be low and the price of power has to be high. (Spark Spread) They may have to roll their trust (TPW.UN-T) back into corporation and the question is, can they do it economically.
SELL
All the utilities, Canadian Utilities (CU-T), Emera (EMA-T) and Fortis (FTS-T) have a far too high P/E relative to their growth.
DON'T BUY
Mostly a dividend story. Has been a laggard compared to most of the other utilities until very recently. No earnings driver and have some issues in the Pacific northwest.
BUY
Enbridge (ENB-T) and Transalta (TA-T) are good holds. A lot of money flowed to them from income trusts after the tax rules were changed.
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