Benjamin Pham, an analyst from BMO Capital, maintained the Hold rating on Canadian Utilities A (CU – Research Report). The associated price target is C$38.00.
Benjamin Pham has given his Hold rating due to a combination of factors including the recent performance and future growth prospects of Canadian Utilities A. The company reported strong fourth-quarter results, with adjusted earnings per share surpassing expectations, driven by higher contributions from ATCO Energy Systems and reduced corporate expenses. However, the performance was tempered by challenges in Australia and losses in the EnPower segment.
Despite the positive earnings report, Pham notes that the company’s shares underperformed compared to its large utility peers, partly due to concerns about moderating earnings in Alberta. Additionally, while the company has outlined an ambitious capital expenditure program, the focus on how to fund this growth remains a concern for investors. Consequently, Pham maintains a Hold rating, reflecting a balanced view of the company’s potential and the challenges it faces.
In another report released on February 13, Scotiabank also maintained a Hold rating on the stock with a C$38.00 price target.
CU’s price has also changed slightly for the past six months – from C$33.440 to C$34.310, which is a 2.60% increase.