Analyst Benjamin Pham from BMO Capital maintained a Buy rating on Boralex Inc Cl A and keeping the price target at C$39.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Benjamin Pham has given his Buy rating due to a combination of factors that highlight the potential for Boralex Inc Cl A’s stock to appreciate. One of the key reasons is the anticipated asset divestitures, such as the Canadian hydro assets, which are expected to serve as a catalyst for the stock. These divestitures could enhance the company’s long-term funding visibility and unlock value, emphasizing that the stock and the broader renewable sector may be undervalued.
Additionally, Boralex’s strategic focus on asset sales is seen as a positive move, especially given the strong demand for renewable assets from pension plans and private equity. The company has already made strides in its funding plan, including a recent $250 million corporate debt financing, and aims to achieve significant growth in generating capacity by 2030. The flexibility in asset sales, coupled with the company’s strong asset quality and attractive relative valuation, further supports the Buy rating.
BLX’s price has also changed moderately for the past six months – from C$26.480 to C$31.220, which is a 17.90% increase.