Fortis: Elevated Valuation and Regulatory Uncertainty Drive Continued Underperform (Sell) Rating

Bank of America Securities analyst Ross Fowler reiterated a Sell rating on Fortis today and set a price target of C$73.00.

Ross Fowler has given his Sell rating due to a combination of factors, including expectations for flat Q1 2026 earnings that slightly trail market forecasts, despite contributions from key U.S. assets like ITC and UNS. Positive drivers such as transmission growth and incremental rate base are being counterbalanced by currency headwinds, share dilution from the DRIP program, asset sales in Belize and Turks and Caicos, and additional corporate-level drag.

Ross Fowler’s rating is based on the view that, while Fortis maintains a sizable capital investment plan and mid-single-digit earnings and dividend growth outlook, the current share price already reflects this trajectory and trades above his target price. With regulatory uncertainty around the TEP rate case and only modest upside from operational drivers, he sees a risk‑reward profile that is unfavorable relative to peers, justifying the continued Underperform stance.