Update shared on27 Aug 2025
Algonquin Power & Utilities’ unchanged consensus price target of CA$7.37 reflects a cautiously optimistic outlook supported by improved earnings guidance and growth targets, though execution risks around regulatory rate cases and a valuation in line with peers limit near-term upside.
Analyst Commentary
- Bullish analysts cite Algonquin’s ambitious growth targets and improved long-term earnings outlook as drivers of higher price targets.
- Positive investor sentiment has been observed following the company’s new guidance and strategic updates.
- Analysts note that realizing these targets is contingent upon Algonquin's successful cost reduction and narrowing the gap between earned and allowed returns on equity.
- Execution risk remains around key regulatory rate cases, which are critical to achieving the projected EPS improvements.
- While near-term outlooks have brightened, the current valuation is considered in line with North American utility peers, offering limited margin of safety.
Valuation Changes
Summary of Valuation Changes for Algonquin Power & Utilities
- The Consensus Analyst Price Target remained effectively unchanged, at CA$7.37.
- The Future P/E for Algonquin Power & Utilities has significantly risen from 10.97x to 15.07x.
- The Consensus Revenue Growth forecasts for Algonquin Power & Utilities remained effectively unchanged, at 3.4% per annum.
Disclaimer
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