Update shared on08 Oct 2025
Fair value Increased 0.83%The analyst price target for Fortis has been raised slightly from $68.06 to $68.63. This change reflects analyst optimism over the company's steady execution on growth plans and a favorable risk/reward outlook.
Analyst Commentary
Recent analyst actions reflect a generally constructive outlook on Fortis, with multiple upgrades and price target increases highlighting ongoing confidence in the company's strategic direction and execution. However, there remain a few points of caution as the company navigates the evolving utility landscape.
Bullish Takeaways- Bullish analysts are encouraged by Fortis's disciplined execution of its significant multi-year capital plan, which targets transmission and infrastructure upgrades to support growth.
- Solid rate base growth exceeding 6% annually, largely driven by diversified investments across North America, is viewed as a key driver for potential earnings upside.
- Exposure to resilient industry trends, including ongoing resource transition initiatives, positions Fortis to benefit from durable long-term investment themes.
- Valuation is seen as attractive and presents an appealing risk/reward profile to investors, particularly with upside linked to rate case outcomes and regulatory environments.
- Bearish analysts highlight the mixed performance across the broader regulated utility sector and suggest Fortis could face headwinds if industry challenges persist.
- There is caution regarding the pace and outcome of regulatory decisions that could impact anticipated earnings or slow capital deployment targets.
- Some observers remain watchful of the potential for execution risk associated with Fortis's ambitious $26 billion five-year infrastructure investment plan.
What's in the News
- On September 4, 2025, Fortis Inc. closed a private placement transaction and issued senior unsecured notes for CAD 750 million at a rate of 5.100% per annum, due December 4, 2055 (Key Developments).
- Fortis Inc. entered into an agreement for a private placement of CAD 750 million in senior unsecured notes, with proceeds intended to support strategic growth and capital requirements. The transaction was announced on September 2, 2025, and was scheduled to close on September 4, 2025 (Key Developments).
- Fortis announced the launch of its FortisPay extension for Adobe Commerce, earning Adobe Commerce App Assurance Program Certification and expanding payment solution capabilities for B2B and ecommerce businesses (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly to CA$68.63 from CA$68.06.
- Discount Rate increased marginally, moving from 6.06% to 6.07%.
- Revenue Growth estimate remains virtually unchanged at approximately 5.23%.
- Net Profit Margin is unchanged at roughly 14.92%.
- Future P/E ratio has edged up modestly from 20.46x to 20.71x.
Disclaimer
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