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Boralex Inc. Class A Shares (BLX)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC)
Q: Given both stocks drifting lower which one has a higher potential for recovery?
I am thinking of switching from BLX to BEPC because of size and assets mix. If rates stay were they are which company will be less impacted?
I am thinking of switching from BLX to BEPC because of size and assets mix. If rates stay were they are which company will be less impacted?
5i Research Answer:
Being much smaller with better expected growth, BLX likely has more upside potential. But it is expensive, and also riskier. We would be more comfortable overall with BEPC. Both companies are sensitive to rates but with current levels we believe BLX will be impacted 'more' as BEPC has a more geographically diverse mix and its hedging ability has been proven.