In a report released today, Sean Steuart from TD Cowen downgraded Northland Power to a Hold, with a price target of C$19.00.
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Sean Steuart has given his Hold rating due to a combination of factors impacting Northland Power’s stock performance. One of the primary reasons is the slower-than-expected free cash flow, which has not met the anticipated levels. This financial metric is crucial for assessing the company’s ability to generate cash after accounting for capital expenditures, and its underperformance suggests potential challenges in financial flexibility.
Additionally, the outlook for Northland Power includes expectations of a ramp-up in certain operations in the upcoming fiscal year. However, the current pace of progress and market conditions have led to a more cautious stance. These elements combined have influenced Steuart’s decision to recommend holding the stock rather than pursuing a more aggressive investment strategy.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a C$23.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NPIFF in relation to earlier this year.