BMO Capital analyst Benjamin Pham has maintained their neutral stance on CU stock, giving a Hold rating today.
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Benjamin Pham has given his Hold rating due to a combination of factors reflecting both improving fundamentals and constrained upside. He notes that Canadian Utilities’ regulated rate base growth has accelerated and is now broadly in line with large-cap peers, supported by a sizable, largely regulated capital program and potential contributions from non-regulated projects and selective acquisitions.
At the same time, he observes that the stock, while trading at a notable price-to-earnings discount versus comparable utilities, has already rallied into the guidance update and may have partially priced in the stronger growth outlook. Pham also highlights that funding the extended capital plan could eventually require equity issuance or asset recycling, and he maintains a relative preference for the parent company ATCO, which tempers his conviction on further outperformance for Canadian Utilities at this stage.
Pham covers the Utilities sector, focusing on stocks such as ATCO Ltd Cl I NV, Rockpoint Gas Storage, Inc. Class A, and Capital Power. According to TipRanks, Pham has an average return of 9.5% and a 68.05% success rate on recommended stocks.
In another report released today, RBC Capital also maintained a Hold rating on the stock with a C$49.00 price target.