Algonquin Power -30% in two days after weak Q3 results, more downgrades

2 months ago 10

Electricity workers and pylon silhouette

zhengzaishuru/iStock via Getty Images

Algonquin Power & Utilities (NYSE:AQN) extends Friday's crisp losses, -13% successful Monday's trading, arsenic astatine slightest 3 analysts downgraded the banal aft the inferior reported a larger than expected Q3 adjusted loss and chopped its full-year net guidance; shares person plunged 30% successful the past 2 trading sessions.

TD Securities reduced its standing to Hold from Buy with a $10 terms target, chopped from $13, BMO Capital chopped the banal to Market Perform from Outperform with an $11 PT, down from $17.50, and Desjardins lowered shares to Hold from Buy with an $11.50 PT, chopped from $14.50.

Algonquin (AQN) present holds a valuation discount to Canadian powerfulness peers, which TD Securities said is "warranted fixed the deficiency of clarity for net maturation prospects and the company's backing platform."

The banal present trades astatine depressed levels that connection charismatic value, but BMO said "there are apt expanding risks of a 'strategic' dividend chopped and backing needs are inactive high."

In its downgrade, Desjardins cited an "uncertain maturation outlook, apt driven by a deficiency of equilibrium expanse discipline, concerns astir upcoming fiscal results, an elevated payout ratio, and questions connected dividend maturation and strategy."

Algonquin Power & Utilities' (AQN) past of large dividend raises is "now successful trouble," with an $800M currency travel shortage earlier dividends which volition beryllium "a large spread to plug," Trapping Value writes successful an analysis recently posted connected Seeking Alpha.

Read Entire Article