Altagas Ltd (ALA-T)
2312 watching
TSE:ALA
25.97
0.14
(0.54%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Oct 19, 2021, 6:06 pm
0
PAST TOP PICK
(A Top Pick Sep 25/20, Up 15%)Preferred Shares K (ALA-PR-K). Played defense while still getting some return. An alternative to cash. Can be a source of cash for future buys.
oil / gas
$25.970
Owned
DON'T BUY
The pipelines have been secondary beneficiaries of higher oil prices. Have just started to hold their own. It is more like a utility. They will be more interest rate sensitive. Rates have begun to rise. Yielding 4%. The spread is narrowing. Inflation also makes the dividend not very large. Will probably continue to move sideways.
oil / gas
WEAK BUY
Pays a safe, good 4% yield. Any infrastructure company carries a lot of debt, and ALA is doing okay. Good price momentum and low volatility. He'd like to see more growth though. Stable overall. You won't go wrong collecting the dividend.
oil / gas
BUY
One of his favourites. He'd buy it here. Tremendous growth in its core utilities, unappreciated by the market. Midstream assets in Western Canada are very positive. New management is doing well. Should see steady increases in the dividend. Better things ahead.
oil / gas
WAIT
Near term, energy appears to be consolidating. Infrastructure companies have had a great run, and will take time to consolidate. Longer-term, probably a good investment. Correction only started in last couple of weeks, so this may take some time.
oil / gas
BUY
Still likes it. Pays a good dividend. He still sees value in the energy sector as a whole, as oil and natural gas prices will hold. [Note: audio problems]
oil / gas
HOLD
Delevered the balance sheet. She owns other utilities. If you own it, it's a good income stock. Attractive yield.
oil / gas
PAST TOP PICK
(A Top Pick Apr 06/20, Up 94%) Finally the stock is getting the right mix of management pulling the right strings and time passing so that some of the thesis was being allowed to play out. It is still his largest position, thinking there is lots of good things ahead for the company.
oil / gas
BUY
Allan Tong’s Discover Picks AltaGas is finally winning as it deleverages and enjoys a rise in nat gas prices, from $2.03/MMBtu in 2020 to $3.04 this year and expected to be $3.11 in 2022. AltaGas’s EPS growth is declining, but at $1.74 it’s still above the $1.31 industry standard. Book value and cash flow are also above its peers. Same goes with ROE, ROI and its margins: 10.24% profit margin vs. the industry’s 9.5%. ALA’s P/E of 12.4x is just a tick above the industry standard, but analysts foresee strong growth ahead at a higher forward P/E of 13.65x. Speaking of which, ALA stock’s revenue growth in 2020 was 10.13%, which outpaced the industry’s 9.64%. Read 2 Rising Canadian Price Targets: AltaGas & Aecon for our full analysis.
oil / gas
BUY
A quiet stock that no one is paying attention to. Trades at 12.4x 2022 expected earnings which is very reasonable. Dividend is nice and well covered. 11% EPS growth modelled. Balance sheet is not great, but it trades as a mid-stream. However, 66% of their business is utilities. A good buy at these levels.
oil / gas
PAST TOP PICK
(A Top Pick Mar 04/20, Up 4%) It remains his biggest holding. A lot lies ahead for ALA. They have exposure to the western Canadian natural gas market (he's very bullish about this) through their Ridley Island propane terminal. He feels good about ALA. It's very well-positioned. They raised their dividend at the end of last year, which was earlier than he expected, and he expects it to grow more. ALA stock should reach the mid/high-20's in the next 12-24 months.
oil / gas
PAST TOP PICK
(A Top Pick Jan 06/20, Up 2%) Represents good value here. Will get solid, steady returns on their Washington utility. Will participate in the changes to NA electrical grid. Offshore nat gas in BC is at capacity. Firing on all cylinders. Increased dividend in December, ahead of schedule.
oil / gas
COMMENT
Misunderstood and undervalued. Now being upgraded to outperform, and this speaks to better times ahead. Balance sheet being restructured in a positive way. Should see dividend increases next year or the one after. $17 is decent, but anywhere below $16 is a great entry point. Yield is 5-5.5%.
oil / gas
BUY on WEAKNESS
He's followed this. They were once saddled with a ton of debt after buying a huge US utility, WGL, but have sold assets to pay that down. They're much better now. Several of their assets have done well, including their propane export facility which is tracking ahead of expectations. Last week, they announced they'll increase their stake in Petrogas which is accretive, though funded by debt. ALA is in a good position now. The dividend is safe. In a few years, they 'll have to seek opportunities elsewhere. Likes this, but look for a better entry point.
oil / gas
Altagas Ltd(ALA-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 11
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 14
Altagas Ltd(ALA-T) Frequently Asked Questions
What is Altagas Ltd stock symbol?
Altagas Ltd is a Canadian stock, trading under the symbol ALA-T on the Toronto Stock Exchange (ALA-CT). It is usually referred to as TSX:ALA or ALA-T
Is Altagas Ltd a buy or a sell?
In the last year, 14 stock analysts published opinions about ALA-T. 11 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Altagas Ltd.
Is Altagas Ltd a good investment or a top pick?
Altagas Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Altagas Ltd.
Why is Altagas Ltd 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 Altagas Ltd worth watching?
14 stock analysts on Stockchase covered Altagas Ltd In the last year. It is a trending stock that is worth watching.
What is Altagas Ltd stock price?
On 2021-10-19, Altagas Ltd (ALA-T) stock closed at a price of $25.97.
