Barclays starts ‘compelling turnaround story’ Algonquin at Overweight

Barclays analyst Michael Lonegan initiated coverage of Algonquin Power (AQN) with an Overweight rating and $7 price target The stock in premarket trading is up 1% to $6.21. Algonquin is a “cheap compelling turnaround story” in the Canadian utilities group, the analyst tells investors in a research note. The firm says the stock’s valuation is in line with its historical average despite the company’s “materially” improved balance sheet and refocused pure-play regulated strategy. Following the sale of its non-regulated renewables business, Algonquin is now mostly a diversified regulated electric, gas, and water utility with exposure across 16 jurisdictions, contends Barclays.