Bank of America Securities analyst Ross Fowler reiterated a Sell rating on Fortis yesterday and set a price target of C$65.00.
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Ross Fowler has given his Sell rating due to a combination of factors influencing Fortis’s financial outlook. Firstly, the company’s current valuation already reflects its growth prospects, suggesting limited upside potential. Although Fortis is expected to report a slight increase in Q3’25 operating EPS compared to the previous year, the anticipated growth is marginal and aligns closely with market consensus.
Additionally, while Fortis’s Project Blue could enhance capacity, its execution demands substantial new generation and transmission capabilities, alongside significant financing. The company’s guidance for rate base growth of 6.5% through 2029 is counterbalanced by higher operational and maintenance expenses, milder weather conditions, and increased financing costs. Furthermore, a reduction in Fortis Alberta’s authorized return on equity adds to the cautious outlook, despite some potential benefits from incremental power and rate base growth in other segments.
FTS’s price has also changed slightly for the past six months – from $46.160 to $50.280, which is a 8.93% increase.