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  5. AQN: Having held this stock thru the dividend cuts it is coming back off life support. [Algonquin Power & Utilities Corp.]
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Q: Having held this stock thru the dividend cuts it is coming back off life support. Do you think it could be attractive in time to come as a takeover for a larger utility company ? What say your crystal ball ??????
Thanks Steve
Asked by STEVE on June 05, 2025
5i Research Answer:

AQN is cheap, trading at 11.8X forward EV/EBITDA and 1.0X book. Its assets are likely worth more individually than its current market cap, making a good case for the sum-of-parts equation. But, management has recently outlined a plan to turn the company around, and acquirers generally don't like buying during recovery phases. We think if its price stagnates around these levels for several months, it would more likely become a takeover target.