Capital Power, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Benjamin Pham from BMO Capital maintained a Buy rating on the stock and has a C$78.00 price target.
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Benjamin Pham has given his Buy rating due to a combination of factors, emphasizing that Capital Power’s diversified operations are cushioning the impact of weaker Alberta power prices while still allowing the company to meet its 2025 financial targets. He also highlights that management has reaffirmed 2026 guidance, supported by substantial hedging, strong performance from U.S. assets, and ongoing organic expansion in wind, solar, and gas projects.
In addition, Pham points to attractive valuation metrics, with Capital Power trading at a discount to its peer group and offering meaningful total return potential. He also sees significant upside from data center power opportunities, future optimization and re-contracting of existing assets, and a growing pipeline of U.S. merchant power acquisitions, all of which reinforce his positive stance on the stock.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$80.00 price target.