BMO Capital analyst Benjamin Pham maintained a Buy rating on Boralex Inc Cl A (BLX – Research Report) yesterday and set a price target of C$39.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Benjamin Pham has given his Buy rating due to a combination of factors that highlight Boralex Inc Cl A’s strong growth potential and strategic positioning. The company’s ambitious organic growth targets through 2030, which include an 8-10% discretionary cash flow per share CAGR, are particularly notable. These targets place Boralex at the upper end of the Canadian Energy Infrastructure sector, reflecting management’s confidence in their ability to deliver substantial growth.
Furthermore, Boralex’s funding strategy is robust, with a balanced mix of equity issuance, debt, and reinvested funds to support its $8 billion capital expenditure plan. The company’s asset quality is strong, with most production contracted with reliable partners, ensuring steady cash flow. Additionally, the potential for valuation expansion, driven by longer PPA durations and a favorable EV/EBITDA multiple, presents an attractive long-term upside for investors. These factors collectively justify the Buy rating and the optimistic 12-month target price of $39.
In another report released on June 9, National Bank also maintained a Buy rating on the stock with a C$42.00 price target.