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  5. CPX: Hi 5i, what is a good purchase price for CPX now, and what is your reasoning please? [Capital Power Corporation]
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Q: Hi 5i, what is a good purchase price for CPX now, and what is your reasoning please? Tx

Asked by Ron on August 19, 2022
5i Research Answer:

CPX is priced well at 18X forward earnings. Good earnings growth is expected this year, with a slight decrease in 2023 expected. Its last quarter was well ahead of estimates. Considering a smaller balance sheet and financial flexibility, CPX trades at a slight discount compared to its larger peers, making it an attractive opportunity even now despite a strong rally since the start of the year. We think $45 would be an attractive entry point.