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Investment Q&A

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Capital Power Corporation (CPX)

Q: Will Alberta’s recent anti renewable energy legislation affect CPX’s future prospects. How do you rank this company compared to other Canadian utilities?

Thanks

Paul

Asked by Paul on October 11, 2023

5i Research Answer:

Right now, it is just a 'pause' on new projects, and is more of a political shot than a true change, in our view. But it certainly impedes CPX's growth ambitions in renewables. We consider it an OK stock: not the best, but certainly priced well to reflect this, at barely 7X earnings. EPS is expected to fall nearly 30% next year which tempers our enthusiasm. Lower rates (if and when) should help the stock and the overall sector.

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