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An announcement from Canadian Utilities A ( (TSE:CU) ) is now available.
Canadian Utilities Limited has announced a preferred share issue agreement with a syndicate of underwriters, including BMO Capital Markets and RBC Capital Markets, to issue 7,000,000 5.60% Cumulative Redeemable Second Preferred Shares Series JJ at $25.00 per share, aiming to raise $175 million. The proceeds from this offering will be used for capital expenditures and general corporate purposes, potentially increasing to $201.25 million if the over-allotment option is fully exercised. This move is expected to bolster the company’s financial position and support its ongoing infrastructure projects, with the shares anticipated to be listed on the Toronto Stock Exchange, subject to regulatory approvals.
The most recent analyst rating on (TSE:CU) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Canadian Utilities A stock, see the TSE:CU Stock Forecast page.
Spark’s Take on TSE:CU Stock
According to Spark, TipRanks’ AI Analyst, TSE:CU is a Neutral.
Canadian Utilities A’s overall stock score is driven by strong financial performance and positive earnings call sentiment, despite challenges with high leverage and regulatory headwinds. The technical indicators support a bullish outlook, while the valuation suggests caution due to a high P/E ratio.
To see Spark’s full report on TSE:CU stock, click here.
More about Canadian Utilities A
Canadian Utilities Limited, a subsidiary of ATCO, operates as a diversified global energy infrastructure corporation. It provides essential services and innovative business solutions through its electricity and natural gas transmission and distribution, international electricity operations, and sustainable energy solutions, including electricity generation, energy storage, industrial water, and cleaner fuels. The company has approximately 9,100 employees and assets worth $24 billion.
Average Trading Volume: 487,158
Technical Sentiment Signal: Buy
Current Market Cap: C$11.42B
Learn more about CU stock on TipRanks’ Stock Analysis page.