Buy, Sell or Hold: Capital Power (CPX-T) — Stock Predictions at Stockchase

TSE:CPX

43.57

0.04 (0.09%) 1d

Showing 1 to 15 of 67 entries

WEAK BUY

Alberta power market fundamentals have improved and benefited CPX. Transitioning aggressively to sustainability. Wind at its back. Cashflow increasing. Valuation consistent with peers. Trying to be carbon-free by 2040. You can't own them all, so he owns AQN, EMA, and BEP.UN instead.

electrical utilities

BUY

Both CPA and AQN have some overlap. Doubled up on Algonquin Power when there was a pullback. Would own both if it was in an RRSP.

electrical utilities

WEAK BUY

CPX vs. AQN Quite high quality. Pretty good torque to Alberta power prices, so if you expect Alberta prices to rally, this one will benefit. AQN is his preference, as it has more diversity in its asset base. AQN has more robust opportunities for growth, plus more leverage to the renewable utilities build out.

electrical utilities

BUY

Own this as well as a renewable? A utility focused in Alberta, but are shifting away from coal towards renewables. It trades at a lower valuation because people are afraid of the Alberta exposure, but he sees good growth ahead as they add more contracted projects. You can own both a BLX or NPI as well as a conventional utility like CPX or CU.

electrical utilities

BUY on WEAKNESS

They are building out their renewable segment. They will be 1/3 renewable. AlbertaPower name is doing better now. It is a steady eddie. Will be a good addition for yield and stability. Buy on weakness. Upgraded this recently.

electrical utilities

BUY

It is making the transition to renewable energy. They have a re-rating potential as they are a well run company. He thinks it is an attractive proposition.

electrical utilities

BUY

Competitive yield. Alberta's phasing out coal-fired plants was a huge blow. It's been diversifying outside Alberta, and growing nicely. Dividend has increased. Broad re-rating of power producers with a growing renewable energy footprint. Halo will continue on these names. Continue to buy here.

electrical utilities

BUY

He likes the power companies. He favours the renewable, alternative energy companies. They have the wind at their back. The green sector will be a force for at least a half a decade to come. There is going to be a greater demand for electricity and for it to be generated in non-traditional ways. He likes NPI-T, AQN-T, and BEP.UN-T.

electrical utilities

DON'T BUY

He owns their bonds and preferreds. Their balanced sheet is a little stretched and they are majorly exposed to Alberta. They'll spend a lot of capex for many years to transition into renewable power. This is probably safe, but there are better names. He's watching this. Don't expect a dividend increase for a while. Could be a long haul.

electrical utilities

HOLD

Good company, yield is safe. Likes strategy going forward. He owns the preferred shares instead. Safe stock. Perfect for your TFSA as a senior. Yield is 7.4%.

electrical utilities

BUY

A power producer that was coal generator in Alberta before, but the government snuffed coal power production (and paid transitional payments). Since then, the company has morphed into nat-gas and renewables using those payments. Strong earnings, up 20% as reported last week. They raised their dividend 7% for the 7th straight year. CPS has recovered nicely since the March low. There's more in the tank to grow. It's attracting more ESG investing, which is a tailwind. Good company and growth.

electrical utilities

DON'T BUY

There is nothing about this stock that interests him. The current valuation means they can not issue more shares as it will be dilutive. Their balance sheet has gone nowhere in 10 years as they pay too much in dividends. The shares have rarely gone above book value. Not a favorite utility in his books by a long shot.

electrical utilities

DON'T BUY

He likes to buy stocks that are in an uptrend and a good valuation. CPX is a stable business, but at 10 times EBITDA and 22 times earnings it is too expensive. The payout ratio and yield are pretty reasonable, but it carries a fairly high level of debt. Yield 6.22%

electrical utilities

DON'T BUY

A western focused energy distribution company. They would benefit when there is volatility in electricity pricing there. It is a great name to own long term but there are others he prefers.

electrical utilities

WEAK BUY

Well-managed, but they had a hiccup when a few years ago when Alberta changed its environmental assessment on coal power plants. So CPX has to close two power plants and have since transformed them (well) into natural gas. Also, CPX operates in market-sensitive Alberta. In the end, CPX has done well. Doesn't trade expensively, so there's upside potential. Problem is, nobody knows power prices will react in Alberta. This is more of a utility. He is lukewarm on it. The whole sector is on sale, cheap, rife for a price upgrade.

electrical utilities

Showing 1 to 15 of 67 entries

Capital Power(CPX-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 7

Stockchase rating for Capital Power is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Capital Power(CPX-T) Frequently Asked Questions

What is Capital Power stock symbol?

Capital Power is a Canadian stock, trading under the symbol CPX-T on the Toronto Stock Exchange (CPX-CT). It is usually referred to as TSX:CPX or CPX-T

Is Capital Power a buy or a sell?

In the last year, 7 stock analysts published opinions about CPX-T. 7 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Capital Power.

Is Capital Power a good investment or a top pick?

Capital Power was recommended as a Top Pick by on . Read the latest stock experts ratings for Capital Power.

Why is Capital Power stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Capital Power worth watching?

7 stock analysts on Stockchase covered Capital Power In the last year. It is a trending stock that is worth watching.

What is Capital Power stock price?

On 2021-10-19, Capital Power (CPX-T) stock closed at a price of $43.57.

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