TransAlta Corp Stock Forecast:
TransAlta Corp‘s average target price for the next 12 months, according to forecasts from 8 analysts, is CAD 15.82. The average analyst rating for the company is Strong Buy. However, Stock Target Advisor’s analysis of TransAlta Corp is Neutral, based on 6 positive signals and 7 negative signals. The company’s stock price was CAD 12.72 at the last closing and has increased by 0.95% in the past week, 6.71% in the past month, and decreased by 4.50% over the past year.
Analysts Coverage Change:
National Bank Financial Upgrades TransAlta (TA:TSX) to an Outperform rating and maintains the target price at $14 on the company’s stock.
STA Research maintains the $12.50 target price and the Hold rating for this stock.
Positive Fundamentals:
TransAlta Corp. is a large company in its sector with a high market capitalization, making it more stable than smaller companies. It has also demonstrated superior risk-adjusted returns compared to its peers over a 12-month holding period, and has a high average annual dividend return over the past five years. Additionally, the company has positive cash flow and positive free cash flow, as well as a high Gross Profit to Asset Ratio, which is a measure of profitability that is popular among value investors. Overall, these factors suggest that TransAlta Corp. may be a good investment opportunity for those looking for a stable company with high returns and a high income yield.
Negative Fundamentals:
TransAlta Corp. stock has several negative attributes that may be of concern to potential investors. These include poor risk adjusted returns, below median dividend returns, poor return on equity, poor return on assets, high leverage, being overpriced on a free cash flow basis, low earnings growth, low revenue growth, and low dividend growth compared to its peers and sector. These factors may indicate that the company is not performing as well as its competitors and may be a risky investment. It is important for investors to proceed with caution and consider these factors before making any investment decisions. Additionally, it’s worth to consider the company’s overall financial situation, its management statements and the industry trends.
About TransAlta Corp.
TransAlta Corporation is a diversified energy company that owns, operates, and develops a wide range of electrical power generation assets in several countries including Canada, the United States, and Australia. The company is organized into four main segments: Hydro, Wind and Solar, Gas, and Energy Transition.
The Hydro segment includes hydroelectric power generation facilities, which use the energy of falling water to generate electricity. The Wind and Solar segment includes wind and solar power generation facilities, which use the energy of the wind and sun respectively to generate electricity. The Gas segment includes natural gas-fired power generation facilities, which use natural gas as a fuel to generate electricity. The Energy Transition segment includes coal-fired power generation facilities, which use coal as a fuel to generate electricity.
In addition to operating power generation facilities, TransAlta also engages in wholesale trading of electricity and other energy-related commodities and derivatives. The company also operates related mining operations and natural gas pipeline operations. TransAlta serves a variety of customers including municipalities, medium and large industries, businesses, and utility customers.
TransAlta was founded in 1909 and is headquartered in Calgary, Canada. With more than a century of experience in the energy industry, the company is well-positioned to continue to meet the evolving needs of its customers and the communities it serves.
