Analyst Benjamin Pham of BMO Capital maintained a Buy rating on Northland Power, with a price target of C$29.00.
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Benjamin Pham has given his Buy rating due to a combination of factors including Northland Power’s robust growth pipeline and attractive valuation. Despite recent challenges such as below-average offshore wind production affecting quarterly results and leading to a reduction in 2025 guidance, the company has shown solid progress in its construction projects, which are on budget and on schedule. These projects are expected to significantly enhance free cash flow and EBITDA through 2027, while also improving dividend sustainability and extending contract durations.
Pham acknowledges that the stock may face short-term pressure due to the recent earnings miss and guidance cut. However, he believes that the market will eventually look beyond these temporary issues and recognize the potential of Northland Power’s ongoing projects. The company’s valuation, which is lower compared to its peers, further supports the Buy rating. Upcoming catalysts, such as achieving revised 2025 guidance and key project milestones, are expected to drive future growth and investor interest.
Based on the recent corporate insider activity of 12 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.