This summary was created by AI, based on 6 opinions in the last 12 months.
Experts have varied opinions on Transalta Renewables (RNW-T). Some believe that the takeover deal will go through and recommend holding shares in the parent company, TransAlta, while others see the takeover as disappointing with the option to accept cash plus shares. Despite interest rate increases impacting yield companies, RNW is viewed as a good investment with a solid balance sheet and compelling free cash flow yield. The renewable business is expected to continue growing despite recent market fluctuations, making it a potentially valuable long-term investment.
The takeover deal will go through. Nothing left in the stock. You wouldn't buy it to make a tiny, minimal percentage.
RNW is a yield proxy, and those have fallen, with decent yield and nice EPS growth. Parent company is taking it over, pending approval. The real question is what do you do with TA? Transaction looks slightly dilutive. Long term, bigger flow in a simplified structure, which could lead to a higher valuation.
Backdrop for TA is really supportive, solid balance sheet, compelling free cashflow yield of 15%. Could be synergies. He likes TA post-closing.
Disappointing. TA is taking it private at $13 per share. A good thing, as RNW was paying out all free cashflow in dividends. If you like the company as a whole, there's an option to accept cash plus shares. He'd exit, take the money and run.
All renewables took off on hype, but then collapsed. The renewable business will continue to grow. Remember that, while renewables are important to the energy complex, they're not yet economically efficient. For example, when there's no wind, you need backup. Right time to buy.
A yield company, and they've all been hurt by interest rate increases. Looked like it had really good growth until December, when growth impetus shifted to the parent, TA. Good 7.5% dividend, especially if rates don't go up as much. Quite cheap at 15x, still decent growth rate. More value in TA, but RNW is still good.
However its cash-available-for-distribution outlook was down 9.5%. Shares immediately plunged 15% from $14.35, and have more or less hovered around $12 this year. Sure, RNW pays a 7.88% dividend, but at a nosebleed 335.7% payout ratio. Maybe a nimble trader can jump in and out of this and gain a few dollars, but all others should avoid. Read Budget winners for our full analysis.
Not a great stock.
Charts suggesting a bad time to buy.
Waiting to see if shares stop falling.
Power company that was spun out from TransAlta.
Results not great lately.
$12 share price a fair price.
Would prefer parent company (TransAlta).
Transalta Renewables is a Canadian stock, trading under the symbol RNW-T on the Toronto Stock Exchange (RNW-CT). It is usually referred to as TSX:RNW or RNW-T
In the last year, 1 stock analyst published opinions about RNW-T. 1 analyst 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 Transalta Renewables.
Transalta Renewables was recommended as a Top Pick by on . Read the latest stock experts ratings for Transalta Renewables.
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.
1 stock analyst on Stockchase covered Transalta Renewables In the last year. It is a trending stock that is worth watching.
On 2023-10-10, Transalta Renewables (RNW-T) stock closed at a price of $12.48.
Recently bought by TransAlta parent. Growth and dividend play. Will continue to own shares in parent (TransAlta).