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AQN: Future CFO Appointment Will Likely Fail To Justify Rich Earnings Multiple

Higher Interest Rates And Rooftop Solar Will Strain Outlook

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AnalystLowTarget
Not Invested
Published 03 Aug 2025

Update shared on 19 Dec 2025

Fair value Increased 16%
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AnalystLowTarget's Fair Value
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1Y
36.7%
7D
6.7%

Analysts have raised their price target on Algonquin Power & Utilities by roughly $1.00 per share, citing higher projected revenue growth, modestly improved profit margins, and a slightly richer but still reasonable forward earnings multiple.

What's in the News

  • Algonquin Power & Utilities appointed Robert J. Stefani as Chief Financial Officer, effective January 5, 2026, bringing extensive experience in regulated utilities and energy finance (Key Developments)
  • Stefani previously served as Senior Vice President and CFO at Southwest Gas Holdings, where he helped transform the company into a fully regulated natural gas business through major portfolio restructuring and capital markets activity (Key Developments)
  • His track record includes overseeing a $1.5 billion pipeline divestiture, the IPO of Centuri Holdings, and $1.35 billion of follow on equity transactions, highlighting a strong background in strategic transactions and capital allocation (Key Developments)
  • Earlier roles at PECO Energy, Exelon, Caterpillar, and in investment banking, along with service as a U.S. Navy officer, position Stefani to guide Algonquin through complex regulatory, M&A, and financing decisions (Key Developments)
  • Brian Chin will remain Interim Chief Financial Officer until Stefani assumes the role in January 2026, supporting continuity in financial leadership during the transition (Key Developments)

Valuation Changes

  • The fair value estimate has risen modestly from CA$6.01 to approximately CA$6.99 per share.
  • The discount rate has increased slightly from about 5.97 percent to roughly 6.17 percent, reflecting a marginally higher required return.
  • The revenue growth assumption has risen meaningfully from about 1.23 percent to approximately 3.46 percent, indicating a more optimistic top line outlook.
  • The net profit margin forecast has improved slightly from roughly 17.16 percent to about 18.11 percent, supporting a modestly stronger earnings profile.
  • The future P/E multiple has edged higher from about 9.44 times to roughly 9.76 times forward earnings, implying a slightly richer valuation.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.