TD Cowen analyst John Mould maintained a Buy rating on Capital Power on December 5 and set a price target of C$80.00.
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John Mould has given his Buy rating due to a combination of factors including Capital Power’s strategic positioning in the growing electricity demand markets such as Alberta and PJM. The company’s strong asset base, particularly its gas-fired power plants, is seen as essential for maintaining system reliability, which is crucial given the increasing need for dependable electricity sources.
Additionally, the recent decline in Capital Power’s stock price presents an attractive entry point for investors. The stock’s valuation is currently below the average of both Canadian and U.S. Independent Power Producers, making it an appealing investment opportunity. Upcoming events, such as the Investor Day and capacity auctions, could further illuminate the company’s growth strategy and potential recontracting opportunities, reinforcing the Buy recommendation.
Mould covers the Utilities sector, focusing on stocks such as Capital Power, ATCO Ltd Cl I NV, and Algonquin Power & Utilities. According to TipRanks, Mould has an average return of 15.7% and a 74.29% success rate on recommended stocks.