Transalta Corp (TA.TO) Buy, Sell or Hold

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Transalta Corp (TA.TO)

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17.69

-0.31 (1.72%)

as of Jun 5, 2026, 8:00:00 pm Market Open.

237 watching

Investor Insights

Jun 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 a range of opinions from experts, reflecting a mixed yet generally cautious sentiment. Some analysts point out that while there is potential demand for energy driven by data centers, there is also a concern that innovations might reduce consumption. The current market sentiment seems to favor AI-related stocks, leading to defensive names like Transalta underperforming. Despite a low yield of around 1.5%, the company is expected to see growth through several projects in Alberta. Analysts highlight a reasonable valuation considering earnings growth forecasts, with a price target set at $24.67, suggesting some upside potential. However, past issues like a significant dividend cut and high leverage raise caution, and most agree that current pricing may not be optimal for new investors.

Consensus

Cautious

Valuation

Fair Value

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BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has shown a strong quarter reporting 7 cents per EPS vs the expected 5 cents. EBITDA has increased 39% with free cash flow increasing 55%. Shares trade at 8x EV to EBITDA, which is in the middle of their historic range. The momentum is encouraging. Unlock Premium - Try 5i Free

HOLD

For a TFSA or RRSP? A decent income stock. She owns some utilities. They're transitioning out of coal. Continue to hold it. She holds growth stocks in an RRSP for the sheltering. A cash account is the best place to hold an income stock so you can take advantage of the dividend tax credit.

BUY

Can charge more for assets because of the SCC decision, so they'll be more highly regarded. It's fine.

PAST TOP PICK

(A Top Pick Jan 28/20, Up 22%) Gives him exposure to renewable infrastructure. TA has rebounded since the pandemic. TA is viewed as Alberta power, but it also co-owns subsidiary Transalta Renewables (wind and solar power generation). You get the rest of TA for free, really, if you strip out T-Renewables. The price of electricity has really come back recently which has boosted shares. This is undervalued and he still likes it.

COMMENT

Owns Transalta renewables. The utility sector as a whole suffers from being not too cheap, fairly leveraged and so he would prefer to get companies that have better cashflow.

BUY

Just had a strong Q2 and reinforced their guidance. There's an extra $3 of value here. Brookfield just made an investment. Has a great balance sheet. Renewables are a hot area, too. With their cash, they can buy back lots of shares. Trading at a 15% free cash yield vs. 9% from its peers.

TOP PICK

Has a $12 price target. Brookfield owns a portion and will buy more. Its ESG score has risen. It's a turnaround story and underowned. Good for renewable exposure. (Analysts’ price target is $10.97)

BUY

It does not pay much of a yield, so it generally is ignored. They are modeling 6% growth in cash flow per share. The balance sheet is in good shape. They are buying back shares. Not his favorite name, but has upside to $11.

HOLD

It has had a good bounce this year. Brookfield has been brought in (now holding 5% of the stock) and holds a couple of board seats. The true value is $11-$12, he thinks. He likes the hydro generation assets on the renewable trend. Yield 2.5%

SELL

He prefers ALA-T to this one at these levels. Nothing is going to move this one materially higher in the next while.

PAST TOP PICK

(A Top Pick Oct 03/18, Up 11%) Doing what it is supposed to do. Dull and boring. He likes their hydro assets and Brookfield has bought into a convertible bond, equivalent to about 5% of the stock outstanding and may add another 5% in the future. Management wants to buy back stock. It should be a $9-$10 stock.

WEAK BUY

It's been smashed in the past five years, dropping from the mid-teens to around $5-6, and cut their dividend. They made some bad calls when Alberta de-regulated and they let their transmission lines go. But they have turned around. The dividend could rise in coming years and it could move to $12. He prefers Capital Power.

PAST TOP PICK

(A Top Pick May 03/18, Up 30%) They did a good job of highlighting value in their hydro assets. They are buying back stock but he would prefer they increased the dividend more. This is a good entry point again.

DON'T BUY

It is difficult. It is southern Alberta. It has been in transition for a bit and still seems to be. He would not feel comfortable in the sector until things look better in Alberta.

BUY

This hurt a lot of people. Now they are cheap, trading at 15.1% free-cash yield. He sees more upside 25-50% though nowhere near to $30.

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Transalta Corp (TA.TO)