TransAlta's analyst price target has been revised upward from $19.77 to $22.82. Analysts cite improved revenue growth expectations and a slight decrease in the perceived discount rate as key drivers of this increase.
What's in the News
- TransAlta will host an Analyst and Investor Day to provide a comprehensive overview of its strategic priorities, long-term plan, financial outlook, and growth objectives (Key Developments)
- Between April 1, 2025 and May 30, 2025, TransAlta repurchased 1,638,600 shares, representing 0.55% of total shares, for CAD 20 million as part of its ongoing share buyback program (Key Developments)
- TransAlta completed the repurchase of 8,263,000 shares, representing 2.75% of total shares, for CAD 101.66 million under the share buyback announced on May 27, 2024 (Key Developments)
- From May 27, 2025 to June 30, 2025, there were no additional share repurchases under the buyback announced on May 27, 2025 (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has increased from CA$19.77 to CA$22.82, reflecting improved valuation expectations.
- Discount Rate declined modestly from 7.49% to 7.37%. This indicates a slightly lower risk premium applied by analysts.
- Revenue Growth estimates have improved, rising from -6.56% to -0.31%. This shows reduced anticipated revenue contraction.
- Net Profit Margin projections decreased from 10.79% to 9.22%, suggesting a slightly less optimistic profitability forecast.
- Future P/E ratio has increased from 32.25x to 35.77x. This indicates higher expected future earnings multiples.
Disclaimer
AnalystConsensusTarget 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 AnalystConsensusTarget 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 AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.