RBC Capital Believes Algonquin Power & Util (TSX: AQN) Still Has Room to Grow

By Carrie Williams

Algonquin Power & Util (TSX: AQN), the Utilities sector company was revisited today, and remains undervalued for at least one analyst on the street. Analyst Robert Kwan from RBC Capital remains bullish on the stock and has a C$14 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.

Algonquin Power & Util has an analyst consensus of Strong Buy, with a price target consensus of C$14.65.

Based on Algonquin Power & Util’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$560 million and quarterly net profit of C$25.96 million. In comparison, last year the company earned revenue of C$345 million and had a net profit of C$42.04 million.

Algonquin Power & Utilities Corp. is a North American based renewable energy and regulated utility company. The company through its subsidiaries, Algonquin Power Co. and Liberty Utilities acquires and operates green energy assets including hydroelectric, wind, thermal and solar power facilities and utility distribution businesses. Algonquin Power & Utilities was founded on August 1, 1988 and is headquartered in Oakville, Canada.

The company’s shares closed last Friday at $13.78, close to its 52-week high of $13.86.