got a nice spike
maybe close to a parabolic rise?
any fundamental reasons
I have a half position for income and some cap gains
should I add, hold or sell?
thanks
Michael
It was an analyst's actions. Here are the details:
Capital Power (CPX.TO) retained its Outperform rating and C$62 price target at National Bank of Canada, according to a note published Tuesday. The price target was based on a risk-adjusted dividend yield of 4.50% applied to the company's estimated 2026 dividend of $2.81, an 11.0x multiple of the bank's 2026e Free-EBITDA and DCF/sh valuation of $63.00. National Bank noted PJM Interconnection announced the results of its 2026/2027 Base Residual Auction, which secured 134,311 MW of unforced capacity generation and demand response to provide electricity to over 67 million people across 13 states and the District of Columbia. The bank said with the stronger than expected 2026/2027 Base Residual Auction results, Capital Power's diversification strategy continues to add shareholder value as National expects a further near 5% accretion to its mid-2026 estimate to mid-2027 estimate AFFO/sh estimates, on top of continuing to engage with counterparties for re-contracting/extending existing contracts across its U.S. fleet, which could help sustain the re-rate momentum for its U.S. FlexGen segment (implied 10x valuation.
The bank added it will look to incorporate the results of the PJM 2026/2027 BRA into its financial model following the company's Q2/25 release on July 30, with an upward bias to target. We would be OK buying for income.