AltaGas Receives a Hold from RBC Capital

By Ryan Adsit

AltaGas (TSX: ALA), the Materials sector company was revisited today, yet the Wall Street analyst remains currently on the sidelines. RBC Capital’s analyst Robert Kwan reiterates their Hold rating on the shares, with a C$35 price target.

According to TipRanks.com, Kwan is a top 100 analyst with an average return of 12.6% and a 76.7% success rate. Kwan covers the Utilities sector, focusing on stocks such as Brookfield Infrastructure, Pattern Energy, and TransAlta.

AltaGas has an analyst consensus of Moderate Buy, with a price target consensus of C$34.96.

Based on AltaGas’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$770 million and quarterly net profit of C$45.4 million. In comparison, last year the company earned revenue of C$602 million and had a net profit of C$67.3 million.

AltaGas Ltd. engages in the generation and distribution of electricity. It operates through the following segments: Gas, Power, and Utilities. The Gas segment business gathers, processes, transports, stores and markets natural gas and natural gas liquids. The Power segment consist of operating conventional and renewable power including wind, run-of-river hydro and biomass. The Utilities segment involves the ownership of regulated natural gas distribution and storage utilities. The company was founded in 1993 and is headquartered in Calgary, Canada.

The company’s shares closed last Friday at $30.39, close to its 52-week low of $29.96.