Q: This stock has seen a consistent decrease over the past while in an environment where energy / utilities have rallied and when HALO stocks have gained traction.
Is there something missing as it seems TA has solid growth for a utility and is based in a province where energy abundance + population growth + favorable government + data center opportunities + Brookfield ownership / partnership all seem to be favorable tailwinds.
Am I missing something as this seems to be a good idea for growth and was recently on the Best Stock Idea list.
Is there something missing as it seems TA has solid growth for a utility and is based in a province where energy abundance + population growth + favorable government + data center opportunities + Brookfield ownership / partnership all seem to be favorable tailwinds.
Am I missing something as this seems to be a good idea for growth and was recently on the Best Stock Idea list.
5i Research Answer:
We do not think anything is missing, TA is up 20% in the past year, though down 5% YTD. The dividend was raised in late February. The low yield and higher than average valuation may be holding it back a bit, but the positive notes in the question certainly apply. TA recently noted at its investor day that it expects "meaningful" cash flow and EBITDA growth into 2029. It did miss estimates in Q4 but we think the outlook remains better than the past here.