Street Calls of the Week
Investing.com - TD Cowen has reiterated its Buy rating and CDN$69.00 price target on Capital Power Corp. (TSX:CPX) (OTC:CPXWF), citing multiple points of exposure to growing electricity demand.
The research firm highlighted Capital Power’s potential growth opportunities in Alberta, PJM, and through recontracting, noting that the company’s valuation is the lowest among Canadian independent power producers at 8.3x 2026E EV/EBITDA.
TD Cowen expressed a positive view of Capital Power’s track record in building a high-quality thermal asset base that is critical for system reliability.
The Buy recommendation is supported by increasing demand for reliable electricity in Capital Power’s core markets, strong competitive positioning in Alberta’s wholesale power market, and the company’s growth history.
The CDN$69.00 target price is based on a sum-of-the-parts EV/EBITDA valuation, implying a 9.4x multiple that represents a premium to Capital Power’s 10-year average TEV/FWD EBITDA multiple, which TD Cowen believes is justified by the company’s evolving asset mix and growing need for power system reliability.
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