Top 10 Newsworthy Upgrades and Downgrades

6. TransAlta Corporation (NYSE:TAC)

Number of Hedge Fund Holders: 29

TransAlta Corporation (NYSE:TAC) is one of the stocks that made it to our list of top 10 newsworthy upgrades and downgrades. On June 12, Jefferies upgraded the company’s stock to “Buy” from “Hold,” increasing the price objective to C$20 from the previous target of C$12, as reported by The Fly. Jefferies highlighted that the company is expected to benefit from increased power prices in Alberta, Canada. This upgrade stems from the more tangible evidence of durably higher AESO (Alberta Electric System Operator) power prices after the large load integration in the 2027/2028 time frame, added the firm. Jefferies noted that it was earlier hesitant to underwrite increasing AESO power prices.

However, it gained confidence to raise the assumptions based on indications from AESO power price forwards and talks with local stakeholders. It acknowledged that these forward markets can be admittedly illiquid at times. While TransAlta Corporation (NYSE:TAC)’s merchant portfolio in Alberta was partially impacted by softness in power prices in Q1 2025, its hedging strategy and active asset optimization generated realized prices well above spot prices.

The company advanced its growth plan by securing a strategic partnership with Nova Clean Energy, LLC, granting TransAlta Corporation (NYSE:TAC) the exclusive option to purchase late-stage development projects in the western United States.

TransAlta Corporation (NYSE:TAC) is engaged in the development, production, and sale of electric energy.