Consensus analyst price targets for Capital Power have been revised upward, reflecting stronger earnings momentum, improved cash flow forecasts, and enhanced growth visibility from portfolio diversification and a favorable policy environment, resulting in a new target of CA$67.59.
Analyst Commentary
- Bullish analysts cite stronger-than-expected earnings momentum, leading to increased confidence in management’s execution.
- Upward revisions to cash flow forecasts, driven by stable or improving generation margins, support higher price targets.
- Continued portfolio diversification and successful integration of recent acquisitions are seen as enhancing long-term growth prospects.
- Regulatory clarity and sustained favorable policy environment for renewable and transition energy projects strengthen the investment case.
- Improved balance sheet flexibility and capital allocation discipline contribute to anticipated dividend growth and shareholder returns.
What's in the News
- Capital Power secured a new long-term contract for Midland Cogeneration Venture with Consumers Energy, extending to 2040, covering 1,240 MW (75% of capacity) from June 2030 and providing a projected USD 100 million annual increase in adjusted EBITDA for the facility.
- The Board of Directors increased the quarterly dividend by 6% to $0.6910 per share, resulting in an annualized dividend of $2.764 per common share.
Valuation Changes
Summary of Valuation Changes for Capital Power
- The Consensus Analyst Price Target has risen slightly from CA$64.55 to CA$67.59.
- The Future P/E for Capital Power has risen from 21.26x to 22.32x.
- The Discount Rate for Capital Power remained effectively unchanged, moving only marginally from 7.52% to 7.55%.
Disclaimer
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