BMO Capital Remains a Hold on TransAlta

By Ryan Adsit

In a new note to investors today, an analyst has provided a rating update for the Utilities sector company, TransAlta (TSX: TA). Analyst Benjamin Pham from BMO Capital rated TransAlta (TSX: TA) a Hold, setting a C$8 price target.

According to TipRanks.com, Pham is a 5-star analyst with an average return of 10.2% and a 84.9% success rate. Pham covers the Utilities sector, focusing on stocks such as Brookfield Renewable Energy, Atlantic Power Corp, and Pattern Energy.

Currently, the analyst consensus on TransAlta is Hold and the average price target is C$7.88, representing a -3.1% downside.

In a report issued on July 20, GMP FirstEnergy also reiterated a Hold rating on the stock with a C$8 price target.

Based on TransAlta’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$578 million and quarterly net profit of C$0. In comparison, last year the company earned revenue of C$492 million and had a net profit of C$16 million.

TransAlta Corp. engages in the generation and distribution of electricity through wind, hydro, gas, and coal power plants. It operates through the following business segments: Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, Energy Marketing and Corporate. The Canadian Coal, U.S.

The company’s shares closed on Friday at C$8.13, close to its 52-week high of C$8.50.