BMO Capital Markets on Friday maintained its outperform rating on the shares of ATCO (ACO.X.TO) while raising its price target to C$69.00 from C$63.00 following the company's fourth-quarter results.
"The Q4/25 earnings report highlighted a step-up in utility rate base growth (to 6.9% vs. 5.4%) as well as an extension of its timeframe to end of decade putting it on par with utility peers. At the same time, its non-regulated ATCO Structures is well positioned for further contract wins, esp. in affordable housing, defense, and energy. Despite these positive fundamentals, the shares trade at ~35% P/E discount to utility peers. As such, we're maintaining our Outperform rating and target to $69 vs. $63," analyst Ben Pham wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Comments