skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. AQN: Hi guys, I'm looking for potential opportunities in the energy space where the line between clean and fossil, as well as energy vs utilities seems to blur more and more. [Algonquin Power & Utilities Corp.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi guys,

I'm looking for potential opportunities in the energy space where the line between clean and fossil, as well as energy vs utilities seems to blur more and more. Also there seems to be increasing suggestion that big oil is interest to move into this space with investment and engineering capital.
Are these corporations good opportunities and if so do they look to be positioned as underpriced for growth relative to the current frothy players like npi and bep?

Asked by Peter on December 02, 2020
5i Research Answer:

FTS looks fine to us. It has specifically noted that it intends to move towards more renewables over time. It has a very solid history and we would bet that this transition is a success, though won't of course be overnight. AQN has a very large portion of its business in renewables already. The majority of its business is distribution and has less exposure to generation already. RDS is the big unknown. Certainly we expect it to 'shift' but based on its huge size and current business this boat is going to be much slower to turn. It has underperformed, but has good upside in a global growth company. We would be fine owning any of these. We would not necessarily consider AQN 'cheap' at 24X earnings.