Benjamin Pham, an analyst from BMO Capital, maintained the Buy rating on Northland Power. The associated price target was lowered to C$25.00.
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Benjamin Pham has given his Buy rating due to a combination of factors that highlight Northland Power’s potential for future growth. Despite the recent surprise 40% dividend cut, which may initially disappoint investors, this move is intended to better position the company for self-funded growth through its extensive development pipeline of approximately 8.5GW. This strategic decision is expected to enhance Northland Power’s financial flexibility, allowing it to accelerate its growth initiatives.
Furthermore, Northland Power’s Q3/25 adjusted EBITDA exceeded expectations, indicating strong operational performance. The company has reiterated its 2025 guidance, with significant progress in its organic growth projects, such as the Hai Long and Baltic Power offshore wind projects, and the Jurassic Battery storage project. These developments, along with a robust development backlog, underscore the company’s commitment to expanding its renewable energy portfolio, making it an attractive investment opportunity according to Pham.