BMO Capital reiterates Outperform rating on Boralex stock, cites potential asset sales

Published 11/07/2025, 16:14
BMO Capital reiterates Outperform rating on Boralex stock, cites potential asset sales

Investing.com - BMO Capital maintained its Outperform rating and CDN$39.00 price target on Boralex (TSX:BLX) (OTC:BRLXF), highlighting potential upcoming asset sales as a positive catalyst for the renewable energy company.

The investment firm specifically mentioned potential divestitures of Canadian hydro assets that could provide further visibility to Boralex’s long-term funding plan through 2030, while potentially unlocking value and highlighting undervaluation in both Boralex shares and the broader renewable sector.

BMO Capital’s price target represents a potential 23% total return for Boralex, which the firm has designated as a "Top 3 Best Idea." The firm’s 2025-2027 adjusted EBITDA estimates stand at $738 million, $809 million, and $824 million, respectively, without yet reflecting any asset divestitures.

According to BMO Capital’s analysis, every $500 million of asset sales would lower Boralex’s debt/EBITDA ratio by approximately 0.3x, providing additional financial flexibility to fund future growth and support the company’s long-term guidance.

The investment firm’s continued confidence in Boralex comes as the renewable energy company explores strategic options for its asset portfolio while maintaining its growth trajectory in the clean energy sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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