TransAlta upgraded to Buy from Hold at Jefferies

Jefferies upgraded TransAlta (TAC) to Buy from Hold with a price target of C$20, up from C$12. The company’s leverage to rising Alberta power prices is “too large to ignore,” the analyst tells investors in a research note. The firm sees more tangible evidence of “durably higher” Alberta Electric System Operator power prices following large load integration in the 2027 and 2028 time frame. Indications from the AESO power price forwards and conversations with local stakeholders give Jefferies confidence to raise its assumptions, the analyst tells investors in a research note.