Billionaire Chris Rokos’ 10 Stock Picks with Huge Upside Potential

8. TransAlta Corporation (NYSE:TAC)

Rokos Capital Management Stake Value: $17,514,000

Upside Potential as of May 7: 44.77%

Number of Hedge Fund Holders: 32

TransAlta Corporation (NYSE:TAC) is a clean energy company based in Canada. It generates and sells electricity from renewable and conventional sources. The company owns and operates energy generation assets across Canada, the United States, and Western Australia.

TransAlta Corporation (NYSE:TAC) reported mixed Q1 2025 results on May 7, 2025.The company achieved a 94.9% operational availability in the quarter, compared to 92.3% in the same period last year. However, adjusted EBITDA fell to 270 million CAD ($196 million) from 342 million CAD ($248 million) in Q1 2024. The same is true for free cash flow, which fell to 139 million CAD ($101 million) from 221 million CAD ($160 million). Despite the underwhelming figures, CEO John Kousinioris expressed confidence in the company’s 2025 outlook. He noted that their “hedging strategy and active asset optimization continued to generate realized prices well above spot prices.”

During the quarter, TransAlta Corporation (NYSE:TAC) made a strategic investment in Nova Clean Energy, LLC, which includes a $75 million term loan and a $100 million revolving facility. The transaction gave the company exclusive rights to purchase Nova’s late-stage development projects in the western US. The partnership grants access to a development portfolio of over 4 GW of renewable energy projects. TransAlta (NYSE:TAC) also moved into the commercialization phase of its Alberta data center project.

On April 10, 2025, Raymond James initiated coverage with a Market Perform rating and a 12.00 CAD ($8.70) price target. The research firm explained that TransAlta (NYSE:TAC) is “redirecting its focus from renewable energy projects to thermal opportunities” and it’s skeptical about the “likelihood of large technology companies moving into the area given the current macroeconomic climate.”