Analyst Sam Burwell from Jefferies maintained a Buy rating on AltaGas and keeping the price target at C$46.00.
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Sam Burwell has given his Buy rating due to a combination of factors that highlight AltaGas’s solid performance and promising future prospects. The company’s EBITDA for the second quarter was in line with expectations, demonstrating robust year-over-year growth in both export and gas processing volumes. This growth is further supported by the progress in construction and contracting at the REEF project, which has been strengthened by a new tolling agreement with PPL, indicating a positive outlook for future operations.
Additionally, AltaGas’s utilities segment showed consistent performance, and the company’s earnings per share slightly exceeded expectations, suggesting operational efficiency and financial health. The midstream segment, in particular, outperformed estimates due to increased exports and gas processing activities, contributing to a 23% rise in segment EBITDA. These factors collectively underpin Sam Burwell’s confidence in AltaGas’s potential, justifying the Buy rating.
In another report released on July 24, RBC Capital also maintained a Buy rating on the stock with a C$43.00 price target.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATGFF in relation to earlier this year.