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  5. AQN: Hi there, Please comment on recent outlook comments from the company. [Algonquin Power & Utilities Corp.]
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Q: Hi there,

Please comment on recent outlook comments from the company.

Do you think it could be an ADD at this point for those of us who are underwater and holding over the past few years in a diversified account?

Ok thank you
Asked by Robert on June 05, 2025
5i Research Answer:

AQN launched a 'back to basics' plan with targets until 2027. It is expecting ROE to rise 3% to 8.5% by 2027, a decline in operating expenses, and it is committing $2.5B in CAPEX spending for utility investments through 2027. It expects to keep shares flat through 2027, with no planned share dilution. A few analysts raised their price targets. We like this clear roadmap outlined by management, and its recent asset sales have helped to reduce debt levels. 

This could mark a pivotal point for the company, and potentially a reversal, but we would like to see its price reverse its downtrend from over the past several years. If the price reaches above $9.5, we would be more comfortable with adding to an existing position as that price level could indicate a reversal in its long-term downtrend.