In a report released yesterday, Benjamin Pham from BMO Capital maintained a Hold rating on Northland Power, with a price target of C$23.00.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Benjamin Pham has given his Hold rating due to a combination of factors surrounding Northland Power’s current financial and operational strategies. The company is undergoing a transition to become a more focused and disciplined global energy infrastructure entity, aiming for a total annual shareholder return of approximately 10%. This is supported by a free cash flow per share growth of around 6%, a self-funded investment-grade balance sheet, and a well-covered yield of about 4.5%. However, despite these positive aspects, there is an anticipation of continued negative sentiment in the near term as the investor base transitions.
Another reason for the Hold rating is the company’s recent dividend cut, which has surprised investors and may contribute to the cautious outlook. Additionally, while Northland Power has outlined a pragmatic and balanced growth plan with new projects and cost optimizations, there are concerns about potential construction challenges and financial offsets from contract rolls and new debt. The company’s strategy to self-fund future growth and manage renewable resource challenges is promising, but the market remains cautious, leading to the Hold recommendation.
Pham covers the Utilities sector, focusing on stocks such as Northland Power, TransAlta, and Brookfield Renewable Partners. According to TipRanks, Pham has an average return of 8.6% and a 67.09% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$17.00 price target.