RBC Capital Lifts Algonquin Power (AQN) PT to $6.50

Algonquin Power & Utilities Corp. (NYSE:AQN) is one of the best high growth stocks. On June 4, RBC Capital lifted the target price to $6.50 from $6 and reiterated a Sector Perform rating on the stock. This adjustment aligns with the company’s newly introduced “Back to Basics” strategy, outlining EPS targets through 2027, along with a forecasted 8.5% ROE and nearly 5% CAGR in its rate base.

The strategic presentation delivered by Algonquin Power’s management exceeded investor expectations, particularly with respect to the company’s forward-looking guidance through 2027. The greater clarity and specificity provided during the presentation seem to have boosted investor confidence, contributing to a nearly 16% increase in the company’s share price. Moreover, Algonquin’s robust profile is supported by its 28-year history of uninterrupted dividend payouts.

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Even though the strategy was well received, RBC Capital kept a Sector Perform rating on Algonquin. The firm explained that they are still concerned about how well the company can follow through on its plans. They also pointed out that the stock seems expensive right now, trading at 21 times and 17 times the expected earnings for 2026 and 2027, based on the company’s guidance, not including HLBV income.

Algonquin Power’s “Back to Basics” plan is a big move to help the company get on stronger financial ground and grow steadily in the next few years.

Algonquin Power & Utilities Corp. (NYSE:AQN), headquartered in Oakville, Canada, is a diversified utility company that specializes in regulated electric, water, wastewater, and natural gas systems.

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