Capital Power initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Shahriar Pourreza initiated coverage of Capital Power (CPXWF) with an Equal Weight rating and C$70 price target. While “still bullish” on independent power producers, the firm says investors “need to be more selective within the space.” Capital Power is pricier than Vistra (VST) and Talen Energy (TLN) on a free cash flow yield basis and contractable merchant assets in Alberta are less exposed to data center upside in the near-term than peers, the analyst tells investors.