AltaGas: Strong Operational Execution and Strategic Growth Drive Buy Rating

BMO Capital analyst Benjamin Pham maintained a Buy rating on AltaGas (ATGFF – Research Report) on March 7 and set a price target of C$40.00.

Benjamin Pham has given his Buy rating due to a combination of factors including AltaGas’s consistent performance in meeting or exceeding guidance for six consecutive years, which underscores the company’s strong operational execution. The robust organic and dividend growth, coupled with the potential acceleration of de-leveraging targets through a possible sale of MVP, further strengthens the company’s financial position.
Additionally, AltaGas’s valuation, while having expanded relative to its peers, still presents an opportunity for further re-rating, with its estimated P/E ratio for 2026 being lower than that of utilities and pipelines. The company’s solid Q4 results, marked by an adjusted EPS that surpassed expectations, and its strategic hedging on global LPG exports and frac spreads, provide a protective buffer against potential downside risks. These factors, along with the company’s focus on debt reduction and self-funded growth, contribute to the positive outlook and Buy rating given by Benjamin Pham.

In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$40.00 price target.