Review of Capital Power

DEC 07, 2023 - CPX’s third quarter was solid displaying growth in EPS, revenue, and EBITDA. Full year guidance is expecting adjusted EBITDA and adjusted funds from operations (AFFO) to come in just below the midpoint of guidance. CPX has a cheap valuation due to weak EPS and revenue growth projections for the next two years. CPX recently completed two acquisitions that were fully accretive for $1.1 billion, which will help better position CPX for the long run. The valuation is attractive, but it is important to note that CPX will be more of a longterm play with a weak short-term outlook. We have maintained our rating at a B+ due to this outlook.